NJ-1040NR. New Jersey Nonresident Return

Transcription

1 prsrt std us postage paid state of new jersey New Jersey Nonresident Return NJ-1040NR This Booklet Contains: Form NJ-1040NR Nonresident Return Form NJ-1040NR-V Payment Voucher Form NJ-630 Application for Extension 2016 NJ-1040NR nj division of taxation po box 269 trenton, nj

2 2016 New Jersey Income Tax Nonresident Return Located to the right, you will find an insert. If you received a booklet with your name and address preprinted on the face of the NJ 1040NR insert, the insert contains your preprinted mailing label, preprinted payment voucher, and an extension application. If your name and address are not preprinted on the insert, it contains only a payment voucher and an extension application. What You Need To Know: Use only blue or black ink when completing your forms. Do not staple, paper clip, tape, or use any other fastening device. Do not make any changes or corrections to any information that is preprinted on the forms. Do not use the preprinted payment voucher or extension application if you filed a joint return last year and this year you are filing your return using only your own Social Security Number or you are filing a joint return with a different person. Do not use the mailing label if any of the preprinted information is inaccurate. Instead, print or type all the information in the spaces provided. Do not place the mailing label on the payment voucher or extension application. Make sure all numbers entered on these forms are placed within the boundaries of each box. Do not use dollar signs or dashes. Print or type numbers as follows: Return Label If the insert to the right contains a preprinted name and address label, and all the information on the label is correct, use the label on your Form NJ 1040NR. See page 12 for more information about the mailing label. INSERT Payment Voucher (Form NJ-1040NR-V) Use the payment voucher (Form NJ-1040NR-V) only if you owe tax on your 2016 return and you are paying by check or money order. Do not send in the payment voucher if you are due a refund and/or credit on your 2016 return. Mail the payment voucher with your check or money order in the same envelope with your tax return. Paying by E-Check or Credit Card You may pay your 2016 New Jersey income taxes or make a payment of estimated tax for 2017 by electronic check (e-check) or credit card (Visa, American Express, MasterCard, or Discover). See How To Pay on page 8. If you pay your taxes by e-check or credit card, do not send in the payment voucher. Extension Application (Form NJ-630) See the instructions on page 7 of this booklet for information on filing an application for extension of time to file your income tax return. Mail the completed extension application and any related payment to the address on the front of Form NJ-630. Note: You may file a request for a six-month extension online until 11:59 p.m. on April 18, 2017, at: If you are required to make a payment with your online extension application, you must make your payment by e-check or credit card.

3 2016 Form NJ-1040NR 1 Line 54B - Endangered and Nongame Species of Wildlife Conservation Fund Web: New Jersey Charitable Funds Line 54G - Other Designated Contribution 03 - Organ and Tissue Donor Awareness Education Fund Web: Line 54C - Children s Trust Fund NJ Children s Trust Fund, PO Box 717, Trenton, NJ Phone: Web: Line 54G - Other Designated Contribution 04 - NJ-AIDS Services Fund NJAIDSFund@doh.state.nj.us Line 54D - Vietnam Veterans Memorial Fund NJ Vietnam Veterans Memorial and Museum, PO Box 648, Holmdel, NJ Phone: Web: Line 54G - Other Designated Contribution 05 - Literacy Volunteers of America New Jersey Fund Web: literacynj.org Phone: Line 54E - New Jersey Breast Cancer Research Fund New Jersey Commission on Cancer Research Phone: Web: Line 54G - Other Designated Contribution 06 - New Jersey Prostate Cancer Research Fund New Jersey Commission on Cancer Research Phone: Web: Line 54F - U.S.S. New Jersey Educational Museum Fund Battleship New Jersey Museum and Memorial, Camden Waterfront, NJ Web: Phone: Line 54G - Other Designated Contribution 07 - New Jersey World Trade Center Scholarship Fund Web: Line 54G - Other Designated Contribution 01 - Drug Abuse Education Fund L.E.A.D Inc., 5 South Main St., Allentown, NJ Phone: Web: Line 54G - Other Designated Contribution 08 - New Jersey Veterans Haven Support Fund Phone: Line 54G - Other Designated Contribution 02 - Korean Veterans Memorial Fund Korean War Memorial, c/o Dept. of Military and Veterans Affairs, Attn: DVS, PO Box 340, Eggert Crossing Road, Trenton, NJ Phone: Web: Line 54G - Other Designated Contribution 09 - Community Food Pantry Fund Web:

4 Form NJ-1040NR New Jersey Charitable Funds Line 54G - Other Designated Contribution 10 - Cat and Dog Spay/Neuter Fund Web: Line 54G - Other Designated Contribution 17 - Leukemia & Lymphoma Society New Jersey Fund Leukemia & Lymphoma Society New Jersey Chapter, 14 Commerce Drive, Ste. 301, Cranford, NJ Phone: Fax: Web: Line 54G - Other Designated Contribution 11 - New Jersey Lung Cancer Research Fund New Jersey Commission on Cancer Research Phone: Web: Line 54G - Other Designated Contribution 18 - Northern New Jersey Veterans Memorial Cemetery Development Fund Web: vva1002.org Phone: Line 54G - Other Designated Contribution 12 - Boys and Girls Clubs in New Jersey Fund Web: Line 54G - Other Designated Contribution 19 - New Jersey Farm to School and School Garden Fund Web: Line 54G - Other Designated Contribution 13 - NJ National Guard State Family Readiness Council Fund Web: Line 54G - Other Designated Contribution 20 - Local Library Support Fund Web: Line 54G - Other Designated Contribution 14 - American Red Cross NJ Fund Phone: RED CROSS Web: redcross.org/nj Line 54G - Other Designated Contribution 21 - ALS Association Support Fund Greater New York Chapter Greater Philadelphia Chapter Web: Web: Phone: Phone: Line 54G - Other Designated Contribution 15 - Girl Scouts Councils in New Jersey Fund Web: Line 54G - Other Designated Contribution 22 - Fund for the Support of New Jersey Nonprofit Veterans Organizations Patty.Richter@dmava.nj.gov Line 54G - Other Designated Contribution 16 - Homeless Veterans Grant Fund Patty.Richter@dmava.nj.gov

5 2016 Form NJ-1040NR 3 Filing Information Your filing status and gross income determine whether you have to file a tax return. Age is not a factor in determining whether you must file. Even minors (including students) and senior citizens must file if they meet the income filing requirements. Gross income means reportable income after subtracting exclusions but before subtracting personal exemptions and deductions. It does not include nonreportable (exempt) income. See page 15 for a list of exempt (nonreportable) income. Members of the Armed Forces (and their spouses), see page 6. Part-year nonresidents, see page 4. Compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey income tax. See page 4 for more information. Use the chart to determine whether you must file a return. This chart is only a guide and may not cover every situation. If you need help, contact the Division s Customer Service Center (see outside back cover). Spouse/Civil Union Partner. Any reference in this booklet to a spouse also refers to a spouse who entered into a valid same-sex marriage in another state or foreign nation and a partner in a civil union (CU) recognized under New Jersey law. Domicile. A domicile is the place you consider your permanent home the place where you intend to return after a period of absence (e.g., vacation, business assignment, educational leave). You have only one domicile, although you may have more than one place to live. Your domicile does not change until you move to a new location with the intent to establish your permanent home there and to abandon your New Jersey domicile. Moving to a new location, even for a long time, does not change your domicile if you intend to return to New Jersey. Your home, whether inside or out side New Jersey, is not permanent if you Who Must File a New Jersey Income Tax Return You must file a return if and your gross income from everywhere for the entire year was your filing status is: more than the filing threshold: Single Married/CU partner, filing separate return $10,000 Married/CU couple, filing joint return Head of household $20,000 Qualifying widow(er)/surviving CU partner Also file a return if You had New Jersey income tax withheld and are due a refund. You paid New Jersey estimated taxes for 2016 and are due a refund. You are eligible for a New Jersey earned income tax credit or other credit and are due a refund. Which Form to File Nonresident Form NJ-1040NR New Jersey was not your domicile, and you spent 183 days or less here; or New Jersey was not your domicile, you spent more than 183 days here, but you did not maintain a permanent* home here. You may also be considered a nonresident for New Jersey tax purposes if you were domiciled in New Jersey and you met all three of the following conditions for the entire year: 1. You did not maintain a permanent home in New Jersey; and 2. You did maintain a permanent home outside New Jersey; and 3. You did not spend more than 30 days in New Jersey. Part-Year Resident Form NJ-1040 New Jersey was your domicile (permanent legal residence) for part of the year; or New Jersey was not your domicile, but you maintained a permanent* home here for part of the year and spent more than 183 days here. Members of the Armed Forces and their spouses, see page 6. Note: You may have to file both a part-year resident and a part-year nonresident return if you received income from New Jersey sources while you were a nonresident (see page 4). Full-Year Resident Form NJ-1040 New Jersey was your domicile (permanent legal residence) for the entire year; or New Jersey was not your domicile, but you maintained a permanent* home here for the entire year and spent more than 183 days here. Members of the Armed Forces and their spouses, see page 6. *A home (whether inside or outside New Jersey) is not permanent if it is maintained only during a temporary period to accomplish a particular purpose. A home used only for vacations is not a permanent home. maintain it only for a temporary period to accomplish a particular purpose (e.g., temporary job assignment). If New Jersey is your domicile, you are considered a resident for New Jersey tax purposes unless you meet all three conditions for nonresident status (see chart). If New Jersey is not your domicile, you are only considered a New Jersey resident if you maintain a permanent home and spend more than 183 days here.

6 4 Filing Information - New Jersey Residents Working/Living Abroad. If New Jersey is your domicile and you are considered a New Jersey resident for tax purposes (see chart on page 3), you are subject to tax on income from all sources (worldwide income) regardless of where you live. New Jersey residents living abroad are subject to the same filing and payment requirements, including estimated payment requirements (see Estimated Tax on page 10), as residents living in New Jersey. Married/Civil Union Couples and Filing Status. If both you and your spouse were nonresidents of New Jersey during the entire tax year, and only one of you earned, received, or acquired income from New Jersey sources, the spouse who had income from New Jersey sources may file a separate New Jersey return even if a joint Federal return was filed. The spouse with income from New Jersey sources calculates income and exemptions as if a Federal married, filing separate return had been filed. You have the option of filing a joint return, but remember, joint income would be reported in Column A of Form NJ-1040NR. If one spouse was a nonresident and the other a resident of New Jersey during the entire tax year and both had income from New Jersey sources, separate New Jersey returns may be filed (the nonresi dent files a nonresident return and the resident files a resident return). Each calculates income and exemptions as if Federal married, filing separate returns had been filed. You have the option of filing a joint resident return, but in that case your joint income would be taxed as if you both were residents. Pennsylvania Residents Income From New Jersey. As a result of the Reciprocal Personal Income Tax Agreement between the Commonwealth of Pennsylvania and the State of New Jersey, compensation paid to Pennsylvania residents employed in New Jersey is not subject to New Jersey income tax. Compensation means salaries, wages, tips, fees, commissions, bonuses, and other remuneration received for services rendered as an employee Form NJ-1040NR TAXPAYERS BILL OF RIGHTS The New Jersey Taxpayers Bill of Rights simplifies tax administration and en - sures that all taxpayers individuals and businesses alike are better informed and receive fair and equitable treatment during the tax collection process. Highlights of the Taxpayers Bill of Rights include: Service Division must respond to taxpayers questions within a reasonable time period. Notices of taxes and penalties due must clearly identify the purpose of the notice and must contain information about appeal procedures. Appeals Time to appeal to the Tax Court is generally 90 days. Interest on Refunds Interest is paid at the prime rate on refunds for all taxes when the Division takes more than six months to send you a refund. You may request that your overpayment of this year s tax be credited towards next year s tax liability, however, interest will not be paid on overpayments that are credited forward. For more information on the rights and obligations of both taxpayers and the Division of Taxation under the Taxpayers Bill of Rights, see publication ANJ-1, New Jersey Taxpayers Bill of Rights. If New Jersey income tax was withheld from your wages, you must file a New Jer sey nonresident return to get a refund. To stop the withholding of New Jersey in come tax, complete a New Jersey Employee s Certifi cate of Nonresidence in New Jersey (Form NJ 165) and give it to your employer. The Reciprocal Agreement covers compensation only. If you are self-employed or receive other income (for example, gain from sale of property) that is taxable in both states, you must file a New Jersey nonresident return and report the income received. Column A. Complete Column A, Lines 14 through 26, showing income from everywhere. Column B. When Pennsylvania residents complete Column B, employee compensation from New Jersey sources should not be included on Line 14. For Pennsylvania residents Line 14, Column B, is zero, so enter 0. Withholdings. If New Jersey income tax was withheld, enter the amount from your W-2s on Line 45. Signed Statement. Pennsylvania residents employed in New Jersey who had New Jersey income tax withheld in error must enclose a signed statement declaring the following, Under penalties of perjury, I affirm that I am a resident of the Commonwealth of Pennsylvania and that, pursuant to an agreement existing between the Commonwealth and the State of New Jersey, I claim exemption from payment of New Jersey gross income tax on compensation paid to me in the State of New Jersey. I understand that under the agreement between Pennsylvania and New Jersey this information is available to the Commonwealth of Pennsylvania. Part-Year Nonresidents Filing Requirements. If you became a resident of New Jersey or moved out of this State during the year, and your income from all sources for the entire year was more than the filing threshold amount for your filing status (see chart on page 3), you must file a resident return and report the portion of the income you received while you were a New Jersey resident. If you received income from a New Jersey source while you were a nonresident, and your income from all sources for the entire year was more than the filing threshold amount for your filing status (see chart on page 3), you must file a New Jersey nonresident return. This is

7 Part-Year Nonresidents - true even if the income reported for your period of nonresidence was equal to or below the threshold. Part-year nonresidents must prorate all exemptions, deductions, credits, and the pension and other retirement income exclusions to reflect the period covered by each return. If you are filing to get a refund and your income from all sources for the entire year was equal to or less than the filing threshold amount, you must enclose a copy of your Federal return. If you did not file a Federal return, include a statement to that effect. Note: If you had any income while you were a resident of New Jersey, you may also need to file a New Jersey resident return. Allocate your withholdings between the resident and nonresident returns. Include only the actual amount withheld while you were a New Jersey resident on your resident return, and include only the amount withheld while you were a nonresident on your nonresident return. For more information, see Form NJ 1040, New Jersey resident return and instructions. Line 14 - Wages Column A. Enter the portion of your wages earned while you were a nonresident. Include wages from sources both inside and outside New Jersey. Column B. Enter the portion of your wages from New Jersey sources earned while you were a nonresident (unless you were a Pennsylvania resident). Other Income Column A. Enter your interest, dividends, pensions, and all other income from sources both inside and outside New Jersey received while you were a nonresident. Partners and shareholders should see Tax Topic Bulletins GIT-9P, Income From Partnerships, or GIT-9S, Income From S Corporations, for instructions on reporting distributive share of partnership income and net pro rata share of S corporation income. Column B. Enter only the income from New Jersey sources that you received while you were a nonresident. Partners 2016 Form NJ-1040NR 5 AVOIDING COMMON MISTAKES Check the following items to avoid mistakes that delay returns and refunds. Check name, address, and Social Security Number for accuracy. Be sure your Social Security Number appears on all documents submitted with your return. Also indicate your state of residency in the space provided. Use correct form for your tax situation (see chart on page 3). Use only blue or black ink when completing forms. Read the instruction booklet before completing the return. Do not report a loss on Form NJ-1040NR. Use State wages from Box 16 of your W-2, not Federal wages. You may need to adjust any amount received from employment outside New Jersey to reflect New Jersey tax law. Enclose all W-2s with your return. Also enclose 1099-Rs and 1099-MISCs that list NJ withholdings. Report estimated payments made in connection with the sale or transfer of real property in New Jersey on Line 46, NOT on Line 45. Complete both Column A and Column B, Lines Use the correct column for your filing status in the Tax Table when calcu lating tax on Line 38. Request a refund by completing Line 56. Enclose all necessary forms, schedules, and other documents with your return (see page 45). Check your math. Sign and date your return. Both spouses must sign a joint return. Enclose a copy of the death certificate and check the box below the signature line if a refund is due and you want the check issued in the name of the surviving spouse or estate (see page 9). Send only one return per envelope. Keep a copy of your return and all supporting documents, schedules, and worksheets. Make changes or correct mistakes to your original return by filing an amended return (see page 10). and, in general, S corporation shareholders, must prorate the entity s income based on the number of days in the entity s fiscal year that the partner or shareholder was a nonresident divided by 365 (366 for leap years). Line 27a - Pension Exclusion. If you were a New Jersey nonresident for only part of the tax year and had total income from all sources for the entire year of $100,000 or less before subtracting any pension exclusion, and you met the other eligibility requirements, you qualify for a pension exclusion. Prorate the exclusion by the number of months you were a New Jersey nonresident. For this calculation, 15 days or more is a month. Column B. No entry is necessary. Line 27b - Other Retirement Income Exclusion. If you (and/or your spouse if filing jointly) were 62 or older on the last day of the tax year, you may qualify to exclude other income on Line 27b. There are two parts to the total exclusion. Part I is the unclaimed portion of your prorated pension exclusion. Part II is a special exclusion for taxpayers who cannot receive Social Security or Railroad Retirement benefits. Do not complete Worksheet D to calculate your total exclusion amount. Instead, calculate your total exclusion as follows:

8 6 Part-Year Nonresidents - Part I. Total the earned income (wages, net profits from business, partnership income, and S corporation income) you received from all sources for the entire year. If this amount was $3,000 or less and you did not use your entire prorated pension exclusion on Line 27a, you may be able to use the unclaimed pension exclusion on Line 27b if your total income from all sources for the entire year before subtracting any pension exclusion was $100,000 or less. Part II. If you cannot receive Social Security or Railroad Retirement benefits, but would have been eligible if you had fully participated in either program, you may also be eligible for an additional exclusion on Line 27b. For more information, see Tax Topic Bulletin GIT 6, Part-Year Residents. Line 30 - Total Exemption Amount. You must prorate your total exemptions based on the number of months you were a New Jersey nonresident. For this calculation, 15 days or more is a month. Total Mos. NJ Nonresident = Line 30 Exemptions 12 See the instructions for Line 30 to calculate the total exemption amount to prorate. Lines 31 through 35 - Deductions. You may deduct the following based on the actual amounts paid during the time you were a nonresident of New Jersey: Medical expenses, qualified Archer medical savings account (MSA) contributions, and health insurance costs of the self- employed (use Worksheet E on page 26) Alimony and separate main tenance payments Qualified conser vation contributions In addition, eligible taxpayers may qualify for: A prorated Health Enterprise Zone (HEZ) deduction. An alternative business calculation adjustment based on the business income (losses) reported during their period of nonresidence Form NJ-1040NR Line 45 - Total New Jersey Income Tax Withheld. You must determine from your W-2, W-2G, and/or 1099 statement(s) the amount of New Jersey income tax withheld from wages you earned or other payments you received while you were a nonresident. If your W-2 includes only wages you earned while you were a nonresident, report the total New Jersey tax withheld on the W-2. If your employer combined your resident and nonresident wages on the W-2, include only tax withheld while you were a nonresident of New Jersey. Line 46 - New Jersey Estimated Payments/Credit From 2015 Tax Return. Enter the amount of estimated payments you made to New Jersey while you were a nonresident. If you made estimated payments both as a resident and as a nonresident, enter only the payments you made to meet your tax liability while you were a nonresident. Also enter any amount you paid to qualify for an extension of time to file. Part II - Allocation of Wage and Sal ary Income Earned Partly Inside and Outside New Jersey. If you must complete Part II, use the total number of days for your period of nonresidence. Check the box at Line 14 if you complete this section. For more information, see Tax Topic Bulletin GIT 6, Part-Year Residents. Military Personnel Determining Residency A member of the Armed Forces whose home of record (domicile) is outside New Jersey does not become a resident of this State when assigned to a duty station here. He or she is a nonresident for income tax purposes. A member of the Armed Forces whose home of record (domicile) was New Jersey when entering the service remains a resident of New Jersey for income tax purposes unless he or she qualifies for nonresident status (see chart on page 3). Your domicile does not change when you are temporarily assigned to duty in another state or country. If your home of record (and domicile) is New Jersey and you are stationed outside the State and you are living aboard ship, in barracks, or billets, bachelor officer quarters, apartment, or house, and you do not intend to remain outside New Jersey, you remain a New Jersey resident for income tax purposes. You are not considered to be maintaining a permanent home outside New Jersey. If you pay for and maintain an apartment or a home outside New Jersey, either by out-of-pocket payments or forfeiture of quarters allowance, that residence is considered a permanent home outside New Jersey. In this case, you will be considered a nonresident for income tax purposes. Filing Requirements Residents. As a New Jersey resi dent, you are subject to tax on all your income, re gardless of where it is earned, unless the income is specifically exempt from tax under New Jersey law. You must report your military pay, including combat pay, as taxable income on your New Jersey resident return, Form NJ Mustering-out payments, subsistence and housing allowances are exempt. For more information, see the resident return instructions. Nonresidents. If you are a nonresident, your military pay is not subject to New Jersey income tax. You are not required to file a New Jersey return unless you received income from New Jersey sources other than military pay. Mustering-out payments, subsistence and housing allowances are also exempt. If you had income from New Jersey sources such as a civilian job in off-duty hours, income or gain from property located in New Jersey, or income from a business, trade, or profession carried on in this State, you must file a New Jersey nonresident return, Form NJ 1040NR. However, you should not report your military pay on the wages line in either Column A (Amount of gross income everywhere) or Column B (Amount from New Jersey sources) on Form NJ 1040NR. for Line 21.) Military pensions are exempt from New Jersey income tax. (See instructions

9 Military Personnel - If your permanent home (domicile) was New Jersey when you entered the military, but you have changed your state of domicile or you met the conditions for nonresident status (see chart on page 3), then your military pay is not subject to New Jersey income tax. File Form DD or DD with your finance officer to stop future withholding of New Jersey income tax. If New Jersey income tax was withheld in error from your military pay, you must file a nonresident return to get a refund of the tax withheld. Enclose a statement explaining how you met the conditions for nonresident status. Spouses of Military Personnel. Under the Federal Military Spouses Residency Relief Act, P.L , (the Act ) a military servicemember s nonmilitary spouse is allowed to keep a tax domicile while moving from state to state, as long as he or she moves into a state to be with a spouse who is in the state on military orders. If you are a nonmilitary spouse and you were domiciled outside New Jersey when you married (or entered into the civil union with) a member of the Armed Forces, you are not considered a New Jersey resident if: The principal reason for moving to this State was the transfer of your military spouse; and You maintain a domicile in another state; and You intend to leave New Jersey when your military spouse is transferred or leaves the service. Under the Act, a nonmilitary spouse who meets these requirements is not subject to New Jersey income tax on earned income from services performed in New Jersey. If you are a nonmilitary spouse whose wages are exempt from New Jersey income tax, file Form NJ-165, Employee s Certificate of Nonresidence in New Jersey, with your employer to stop New Jersey income tax withholdings. You must notify your employer if you no longer meet the conditions for the withholding exemption. If your employer withheld 2016 Form NJ-1040NR 7 New Jersey income tax or you made estimated payments in error, you must file a nonresident return (Form NJ-1040NR) to get a refund. Enclose a statement explaining how your wages are exempt under the Act along with a copy of your spousal military identification card. Print military spouse at the top of the return. The Act applies only to earned income from services performed in New Jersey by a nonresident civilian spouse of a servicemember. Nonresident civilian spouses are subject to New Jersey income tax on all other types of income from New Jersey sources, such as gain from sale of property located in New Jersey, and must file a New Jersey nonresident return if required (see chart on page 3). Wages earned in New Jersey by a nonresident civilian spouse who lives outside New Jersey are also subject to New Jersey income tax and must be reported as income from New Jersey sources in Column B of Form NJ-1040NR. A nonresident civilian spouse who lives outside New Jersey may not use Form NJ-165 to claim an exemption from New Jersey income tax withholding on wages earned in this State as the nonmilitary spouse of a servicemember. New Jersey law requires that a married couple s filing status for New Jersey purposes be the same as for Federal purposes, unless they are a civil union couple. A married couple filing a joint Federal return must file a joint return in New Jersey. However, if both are nonresidents and only one had income from New Jersey, that spouse may file a separate New Jersey return. Another exception to this rule is when one spouse is a New Jersey resident and the other is a nonresident for the entire year. In this case, the resident may file a separate return unless both agree to file jointly as residents. If they file a joint resident return, their joint income will be taxed as if they were both residents. Extensions Special rules apply to members of the Armed Forces of the United States and civilians providing support to the Armed Forces. (See Military Extensions on page 8.) Death Related to Duty When a member of the Armed Forces serving in a combat zone or qualified hazardous duty area dies as a result of wounds, disease, or injury received there, no income tax is due for the tax year the death occurred, or for any earlier years served in the zone or area. For more information on military personnel (and the rules affecting their spouses), see Tax Topic Bulletin GIT-7, Military Personnel. When to File In general, your New Jersey income tax return is due when your Federal income tax return is due. If you are a calendar year filer, your 2016 New Jersey income tax return is due by April 18, If you are a fiscal year filer, you must file your New Jersey income tax re turn by the 15th day of the fourth month following the close of the fiscal year. Postmark Date. All New Jersey income tax returns postmarked on or before the due date of the return are considered filed on time. Tax returns postmarked after the due date are considered filed late. If the postmark date on your return is after the due date, the filing date for that return is the date the Division received your return, not the postmark date. Interest on unpaid liabilities is assessed from the due date of the return. Extension of Time to File An extension of time is granted only to file your New Jersey income tax return. There is no extension of time to pay tax due. We will notify you only if we deny your extension request, but not until after you actually file your return. Penalties and interest are imposed whenever tax is paid after the original due date. Six-Month Extension You may receive a six-month extension of time to file your New Jersey nonresident return only if you have paid at least 80% of your tax liability (Line 40 of the Form NJ-1040NR you file) through withholdings, estimated payments, or other payments by the original due date, and 1. Federal extension filed. You enclose a copy of your Federal Application for

10 8 Extension of Time to File - Auto matic Extension with your final return and check the box at the top of your NJ-1040NR (or enter your confirmation number in the space provided at the top of Form NJ-1040NR if you filed the extension application or payment online or by phone); or 2. No Federal extension filed. You file a request for a six-month extension on Form NJ-630, Application for Extension of Time to File New Jersey Gross Income Tax Return, by the original due date of the return. Taxpayers who file Form NJ-630 will not receive an approved copy. We will notify you only if we deny your request, but not until after you actually file your return. Note: If you file a Federal extension, you must still file Form NJ-630 by the orig inal due date if you need to make a payment to meet the 80% requirement. Civil Union Couples. Civil union partners filing a joint return must either provide copies of the Federal extension application (or confirmation number) for both partners, or they must file Form NJ-630. If you fail to satisfy the requirements outlined for an extension, or you fail to file your return by the extended due date, we will deny your extension request and impose penalties and interest from the original due date of the return. (See Penalties, Interest, and Collection Fees on page 11.) There is an application for extension (Form NJ-630) at the front of this booklet. Do not use the preprinted Form NJ-630 if you filed a joint return last year and this year you are filing your return using only your own Social Security Number, or you are filing a joint return with a different person. Or, you can file an extension application online until April 18, 2017, at Military Extensions Special rules apply to members of the Armed Forces of the United States and civilians providing support to the Armed Forces Form NJ-1040NR A person on active duty with the Armed Forces of the United States, who may not be able to file on time because of distance, injury, or hospitali zation as a result of this service, will auto matically receive a six-month extension by enclosing an explanation when filing the return. Combat Zone. New Jersey allows extensions of time to file income tax returns and pay any tax due for members of the Armed Forces and civilians providing support to the Armed Forces serving in an area that has been declared a combat zone by execu tive order of the President of the United States or a qualified hazardous duty area by Federal statute. Once you leave the combat zone or qualified haz ard ous duty area, you have 180 days to file your tax re turn. Enclose a statement with your return to explain the reason for the extension. In addition, if you are hospitalized outside New Jersey as a result of injuries you received while serving in a combat zone or qualified hazardous duty area, you have 180 days from the time you leave the hospital or you leave the combat zone or hazardous duty area, whichever is later. Enclose a statement of explanation with your return when you file. No interest or penalties will be as sessed during a valid extension for serv ice in a combat zone or qualified hazard ous duty area. This extension also applies to your spouse if you file a joint return. How to Pay You must pay the balance of tax due in full by the original due date of the return. You may make your payment by check or money order, electronic check (e-check), or credit card. If you owe less than $1, you do not have to make a payment. Check or Money Order. There is a payment voucher (Form NJ 1040NR V) at the front of this booklet. If you owe tax and are sending the payment with your return, enter the amount of tax due in the boxes on the voucher. Do not change any information that is preprinted on the voucher. Instead, make any necessary changes on your NJ 1040NR. Do not use the preprinted voucher if you filed a joint return last year and this year you are filing using only your own social security number, or you are filing a joint return with a different person. Form NJ-1040NR-V is available on the Division s website ( Make your check or money order payable to: State of New Jersey TGI. Write your social security number on the check or money order. If you are filing a joint return, include the social security numbers for both of you in the same order the names are listed on the return. Send your payment for the balance due with the voucher in the same envelope with your tax return. (See Where to Mail Your Return on page 9.) If you are paying a balance due for 2016 and also making an estimated payment for 2017, use separate checks or money orders for each payment. Send your 2017 estimated payment with an NJ ES voucher to the address on that payment voucher. Do not include the estimated payment with your 2016 income tax return. Electronic Check (e-check). You may be able to pay your 2016 taxes or make an estimated payment for 2017 by e-check on the Division s website ( If you do not have Internet access, you can make an e-check payment by contacting the Division s Customer Service Center or by visiting a Regional Office (see outside back cover). Do not send in the payment voucher if you pay by e check. You will need your social security number and date of birth to make an e-check payment. The social security number you enter must match the first Social Security Number shown on the form related to your payment, and the date of birth you enter must be the date of birth for that person.

11 How to Pay Form NJ-1040NR 9 You will need your bank s 9-digit routing number and your account number to pay by e check. Do not enter the check number as part of the account number. Note: The routing and account numbers may be in different places on your check. prime rate, compounded annually, will be paid from the later of: The date the refund claim was filed; The date the tax was paid; or The due date of the return. No interest will be paid when an overpayment is credited to the next year s tax liability. Note: (1) You must enter your Social Security Number and date of birth properly, or you will not be able to pay by e-check. (2) If you are filing a New Jersey return for the first time, or your filing status is different than the filing status on your 2015 return, you may not be able to pay by e-check. (3) New Jersey will not accept e-check payments made using an account that is funded from a financial institution outside the United States. Credit Card. You can pay your 2016 taxes or make an estimated tax payment for 2017 online ( or by phone ( ) and use a Visa, American Express, MasterCard, or Discover credit card. You can also pay by credit card by contacting the Division s Customer Service Center or by visiting a Regional Office (see outside back cover). Fees apply when you pay by credit card. The fee is added to your actual tax payment. Do not send in the voucher if you pay your taxes by credit card. Time Limit for Assessing Additional Taxes. The Division of Taxation has three years from the date you filed your return or the original due date of the return, whichever is later, to send you a bill for additional taxes you owe. There is no time limit if you did not file your return, or if you filed a false or fraudulent return with the intent to evade tax. The time limit may be extended if: You amended or the IRS adjusted your Federal taxable income; You amended your New Jersey taxable income; You entered into a written agreement with the Division extending the time to make an assessment; You omitted more than 25% of your gross income on your New Jersey income tax return; or The Division issued an erroneous refund as a result of fraud or misrepresentation by you. Where to Mail Your Return Use the envelope in your booklet to mail your NJ 1040NR, related enclosures, payment voucher, and check or money order for any tax due. Send only one return per envelope. Mail Your Return to: State of New Jersey Division of Taxation Revenue Processing Center PO Box 244 Trenton NJ Refunds You must file a return to claim a refund for overpayment of tax. If the refund is $1 or less, you must enclose a statement requesting it. Time Period for Refunds. To get a refund, you generally must file your return within three years from the date the return was due (including extensions). If you and the Division agree in writing to extend the period of assess ment, the period for filing a refund claim will also be extended. Interest Paid on Refunds. If the Division takes more than six months to send your refund, you have a right to receive interest on that refund. Interest at the Under New Jersey law, if you owe any money to the State of New Jersey, any of its agencies, the Internal Revenue Service, or another claimant state or city that has a personal income tax set-off agreement with New Jersey, we will deduct it from your refund or credit. These debts include, among other things, money you owe for past due taxes, child support due under a court order, school loans, hospital bills, and IRS levies. If the Division applies your refund or credit to any of these debts, we will notify you by mail. Deceased Taxpayers If a person received income in 2016 but died before filing a return, the surviving spouse or personal representative (executor or administrator of an estate or anyone who is in charge of the decedent s personal property) should file the New Jersey return. The due date for filing is the same as for Federal purposes. Filing Status. Use the same filing status that was used on the final Federal income tax return, unless the decedent was a partner in a civil union. (See Filing Status on page 12.) Name and Address Joint return. Write the name and address of the decedent and the surviving spouse in the name and address fields. Other filing status. Write the decedent s name in the name field and the personal representative s name and address in the remaining fields. Print Deceased and the date of death above the decedent s name. Exemptions and Deductions. Prorate exemptions or deductions only if the decedent was a resident of New Jersey for part of the year and a nonresident for part of the year.

12 10 Deceased Taxpayers - Signatures Personal representative. A personal representative filing on behalf of a deceased taxpayer must sign the return in his or her official capacity. If it is a joint return, the surviving spouse must also sign. No personal representative. If filing a return when there is no personal representative for the deceased, the surviving spouse signs the return and writes Filing as Surviving Spouse or Filing as Surviving Civil Union Partner in the signature section. If there is no personal representative and there is no surviving spouse, the person in charge of the decedent s property must file and sign the return as personal representative. If there is a refund due and you want the Division to issue the check to the decedent s surviving spouse or estate: Check the box below the signature line, and Enclose a copy of the decedent s death certificate. Income in Respect of a Decedent. If you had the right to receive income that the deceased person would have received had he or she lived, and the income was not included on the decedent s final return, you must report it on your own return when you receive it. Include the income on Line 25 as Other income. Estates and Trusts Filing Requirements for Estates and Trusts. The fiduciary of an estate or trust may be required to file a New Jersey income tax return for that estate or trust. The return must be filed on a New Jersey Fiduciary Return, Form NJ The fiduciary must also provide each beneficiary with a New Jersey Schedule NJK-1, which shows the beneficiary s share of the estate or trust income actually distributed or required to be distributed during the tax year Form NJ-1040NR Revocable grantor trusts must file Form NJ-1041 when there is sufficient nexus with New Jersey and the statutory filing re quirement is met. For more information, see the NJ 1041 instructions. Filing Requirements for Beneficiaries. The net income earned by an estate or trust does not retain its character (i.e., interest, partnership income); rather, it is a specified income category Net Gains or Income Derived Through Estates or Trusts. You must report the Total Distribution and New Jersey Source Income shown on your Schedule NJK-1, Form NJ-1041 as net income from estates or trusts on Line 25, Other Income. If you did not receive a Schedule NJK-1, you must adjust the interest, dividends, capital gains, business or partnership income, etc. listed on your Federal K-1 to reflect New Jersey tax law. Net the adjusted amounts, and include the total on Line 25. Enclose a copy of your NJK-1 or Federal K-1 with your return. If the income from a grantor trust is reportable by or taxable to the grantor for Fed eral income tax purposes, it is also taxable to the grantor for New Jersey income tax purposes. See instructions for Line 25 for reporting requirements. Partnerships A partnership is not subject to gross income tax. Indi vidual partners are subject to tax on the income they earned from the partnership under the Federal Internal Revenue Code and the New Jersey Gross Income Tax Act. See page 22 for information on reporting income from a partnership. Every partnership that has a New Jersey resident partner or income from New Jersey sources must file a New Jersey Partnership Return, Form NJ 1065, by the 15th day of the fourth month following the close of the partnership s tax year. For more information on partnership filing, see Form NJ 1065 and instructions. Estimated Tax Estimated tax means the amount that you estimate to be your income tax for the tax year after subtracting withholdings and other credits. You must make estimated payments using Form NJ 1040-ES if your estimated tax is more than $400. Instructions for calculating your estimated tax and making the payments accompany the form. Review the amount of New Jersey income tax on your expected income (after deductions and credits) to determine if you need to make estimated payments for You can avoid making estimated payments by asking your employer to withhold more tax from your wages. To do this, complete Form NJ W4 and give it to your employer. Fail ure to file a Declaration of Estimated Tax or to pay all or part of an underpayment will result in interest charges on the underpayment. Underpayment of Estimated Tax. If you failed to make all of the required estimated payments as described above, you should complete Form NJ 2210, Underpayment of Estimated Tax by Individuals, Estates or Trusts, to determine if interest is due and calculate the amount. Enter on Line 43 the amount of interest due from line 19, Form NJ Check the box at Line 43 and enclose Form NJ-2210 with your return. For more information, see Tax Topic Bulletin GIT-8, Estimating Income Taxes. Amended Returns If you received an additional tax statement (W-2 or 1099) after filing your return, or you found that you made a mistake on your return, file an amended nonresident return by completing a new NJ-1040NR and writing amended across the top. If you are amending an item that requires supporting documentation, enclose the applicable document, schedule, or form. If your original return was filed electronically, enclose all supporting documents (W-2, NJK-1, etc.) that you would have enclosed if you had filed the original return on paper including those that support items that are not being amended. Do not use Form NJ 1040X to amend a nonresident return.

13 Amended Returns Form NJ-1040NR 11 Changes in Your Federal Income Tax. If you receive a notice that the Internal Revenue Service changed your reported income, and that change alters your New Jersey taxable income, you must notify the Division of the change in writing within 90 days. File an amended tax return and pay any additional tax due. If you file an amended Federal return that changes your New Jersey taxable in come, you must file an amended New Jersey return within 90 days. Accounting Method Use the same accounting method for New Jersey income tax that you used for Federal income tax purposes. Income must be recognized and reported in the same period as it is recognized and reported for Federal purposes. Rounding Off to Whole Dollars When completing your return and the accompanying schedules, you may show the money items in whole dollars. If you round off, do so for all amounts. To round, drop any amount under 50 cents, and increase any amount 50 cents or more to the next dollar. If you have to add two or more items to calculate the total to enter on a line, include cents when adding the items and round off only the total. When rounding, enter zeros in the space provided for cents. Penalties, Interest, and Collection Fees Penalty and interest should be included with the payment of any tax due. Late Filing Penalty 5% per month (or part of a month) up to a maximum of 25% of the outstanding tax liability when you file a return after the due date or extended due date. A penalty of $100 for each month the return is late may also be imposed. Late Payment Penalty 5% of the outstanding tax balance may be imposed. Interest 3% above the prime rate for every month or part of a month the tax is unpaid, compounded annually. At the end of each calendar year, any tax, penalties, and in terest remaining due (unpaid) will become part of the balance on which interest is charged. Collection Fees In addition, if your tax bill is sent to our collection agency, a referral cost recovery fee of 10.7% of the tax due will be added to your liability. If a certificate of debt is issued for your outstanding liability, a fee for the cost of collection of the tax may also be imposed. Signatures Sign and date your return in blue or black ink. Both spouses must sign a joint return. The signature(s) on the form you file must be original; photocopied signatures are not acceptable. We cannot process a return without the proper signatures and will return it to you. This causes unnecessary processing delays and may result in penalties for late filing. Preparer Authorization. Because of the strict provisions of confidentiality, Division of Taxation personnel may not discuss your return or enclosures with anyone other than you without your written authorization. If you want a Division of Taxation representative to discuss your tax return with the person who signed your return as your Paid Tax Preparer, check the box above the preparer s signature line to give your permission. Tax Preparers. Anyone who prepares a return for a fee must sign the return as a Paid Preparer and enter his or her Social Security Number or Federal preparer tax identification number. Include the company or corporation name and Federal identification number, if applicable. A tax preparer who fails to sign the return or provide a tax identification number may incur a $25 penalty for each omission. Someone who prepares your return but does not charge you should not sign your return. Note: Preparers that reasonably expect to prepare 11 or more individual resident income tax returns (including those filed for trusts and estates) during the tax year must use electronic methods to file those returns if an electronic filing option is available. A tax preparer is liable for a penalty of $50 for each return he or she fails to file electronically when required to do so. Keeping Tax Records Keep copies of your tax returns and the supporting documentation of income, age and/or disability, de ductions, and credits until the statute of limitations has expired for each return. Generally, this is three years after the filing date or two years from the date the tax was paid, whichever is later. Privacy Act Notification The Federal Privacy Act of 1974 requires an agency requesting information from individuals to inform them why the request is being made and how the information is being used. The Division of Taxation uses your Social Security Number primarily to account for and give credit for tax payments. We also use Social Security Numbers to administer and enforce all tax laws for which we are responsible. Federal/State Tax Agreement The Division of Taxation and the Internal Revenue Service have entered into a Federal/State Agreement to exchange income tax information in order to verify the accuracy and consistency of information reported on Federal and New Jersey income tax returns. Fraudulent Return Anyone who deliberately fails to file a return, files a fraudulent return, or attempts to evade the tax in any manner may be liable for a penalty up to $7,500, or imprisonment for three to five years, or both.

14 Form NJ-1040NR Line-by-Line Instructions Name and Address Place the peel-off label from the front of this booklet in the name and address sec tion at the top of the return. Do not use the label if any of the information is incorrect. If your label contains inaccurate information or you do not have a label, print or type your name (last name first), complete address, and zip code in the spaces provided. Also include your spouse s name if filing jointly. Your refund and next year s form will be sent to the address you provide. If your legal residence and the address on the return differ, enclose a statement of explanation to avoid a delay in processing. Check the Change of Address box if your address has changed since you last filed a New Jersey return or if any of the address information on your label is incorrect. Social Security Number To protect your privacy, your Social Security Number is not printed on your name and address label. You must enter your Social Security Number in the space provided on the return. If your filing status is married/cu couple, filing joint return, remember to report both filers numbers in the order in which the names are listed on the return. If you (or your spouse) do not have a Social Security Number, file Form SS-5 with the Social Security Administration to apply for one. Taxpayers who are not eligible for a Social Security Number must file Form W-7 with the Internal Revenue Service to get an individual taxpayer identification number (ITIN). Enter on Form NJ 1040NR the same number (Social Security Number or ITIN) that you entered on your Federal income tax return. If you (or your spouse) applied for but have not received an ITIN by the return due date, enclose a copy of your Federal Form W-7 application with your New Jersey income tax return. Note: A copy of Form W-7 (or W-7A) cannot be used in place of a valid Social Security Number, ITIN, or ATIN for a dependent when completing Line 13, Dependents Information. State of Residency Indicate the place outside New Jersey where you resided for the period covered by this return. NJ Residency Status If you were a New Jersey resident for any part of the tax year, list the month, day, and year your residency began and the month, day, and year it ended. Filing Status (Lines 1 5) In general, you must use the same filing status on your New Jersey return as you do for Federal purposes. Indicate the appropriate filing status. Check only one box. Civil Unions. Partners in a civil union recognized under New Jersey law must file their New Jersey income tax returns using the same filing statuses as spouses under New Jersey Gross Income Tax Law. Civil union partners may not use the filing status single. More information on civil unions, including legally sanctioned same-sex relationships established outside New Jersey, is available on the Division s website ( Any reference in this booklet to a spouse also refers to a spouse who entered into a valid same-sex marriage in another state or foreign nation and a partner in a civil union (CU) recognized under New Jersey law. Single. Your filing status is single if you are not married or not a partner in a civil union on the last day of the tax year, and you do not qualify to file as head of household or qualifying widow(er)/surviving CU partner (see below). Married/Civil Union Couples. If both you and your spouse were nonresidents of New Jersey during the entire tax year, and only one of you earned, received, or acquired income from New Jersey sources, the spouse who had income from New Jer sey sources may file a separate New Jersey return even if a joint Federal return was filed. The spouse with income from New Jersey sources computes income and exemptions as if a Federal married, filing separate return had been filed. You have the option of filing a joint return, but remember, joint income would be reported in Column A of Form NJ-1040NR. If one spouse was a nonresident and the other a resident of New Jersey during the entire tax year and both had income from New Jersey sources, separate New Jersey returns may be filed (the nonresident files a nonresident return and the resident files a resident return). Each computes income and exemptions as if Federal married, filing separate returns had been filed. You have the option of filing a joint resident return, but remember, joint income would be taxed as if both were residents. If you are filing separately, be sure to enter the name and Social Security Number of your spouse in the space provided under Line 3. Note: You may file jointly or separately only if you were married or a partner in a civil union on the last day of the tax year. Head of Household. If you meet the requirements to file as head of household for Federal income tax purposes, you may file as head of household for New Jersey. Certain married individuals/civil union partners living apart may file as head of household for New Jersey if they meet the requirements to file as head of household for Federal purposes. Qualifying Widow(er)/Surviving CU Partner. If your spouse died during 2016, you may file a joint return for the two of you provided you did not remarry or enter into a new civil union before the end of the year. You may be eligible to use the filing status qualifying widow(er)/surviving CU partner for 2016 only if your spouse/cu partner died in either 2014 or 2015, you did not remarry or enter into a new civil union before the end of 2016, and you meet the other requirements to file as qualifying widow(er) with dependent child for Federal purposes. Domestic Partners. If you were a member of a domestic partnership registered in New Jersey, you are not considered to be married or in a civil union. Do not use either the joint or separate filing statuses at Lines 2 and 3. However, if you also

15 Filing Status (Lines 1 5) - entered into a legally sanctioned same-sex relationship outside New Jersey, you may still be able to use the joint or separate filing statuses for married/cu couples. For more information, see the Division s website ( and Tax Topic Bulletin GIT-4, Filing Status. Exemptions - Personal Line 6 - Regular Exemptions As a taxpayer, you may claim a personal exemption for yourself, even if you are a minor who is claimed as a dependent on your parents return. For your convenience, Yourself is already checked. If you are married or in a civil union and filing a joint return, check the spouse/cu partner box as well. If you were a member of a domestic partnership that was registered in New Jersey on the last day of the tax year, you may claim an exemption for your domestic partner only if he or she does not file a New Jersey income tax return. You must enclose a copy of your New Jersey Certificate of Domestic Partnership the first time you claim the exemption, and you may be asked to provide additional information. If you are claiming this exemption, check the domestic partner box. Add the number of boxes checked and enter the result on Line 6. Line 7 - Age 65 or Older If you were 65 or older on the last day of the tax year, you are eligible for an additional exemption. If you are filing a joint return, an additional exemption is also available if your spouse was 65 or older on the last day of the tax year. This exemption is not available for a domestic partner or for your dependents. You must enclose proof of age such as a copy of a birth certificate, driver s license, or church records with your return the first time you claim the exemption(s). Check the appropriate box(es). Add the number of boxes checked and enter the result on Line 7. Line 8 - Blind or Disabled If you were blind or disabled on the last day of the tax year, you are eligible for 2016 Form NJ-1040NR Line-by-Line Instructions 13 an additional exemption. If you are filing a joint return, an additional exemption is also available if your spouse was blind or disabled on the last day of the tax year. This exemption is not available for a domestic partner or for your dependents. Disabled means total and permanent inability to engage in any substantial gainful activity because of any physical or mental impairment, including blindness. You must enclose a copy of the doctor s certificate or other medical records evidencing legal blindness or total and permanent disability with your return the first time you claim the exemption(s). This information need not be submitted each year as long as there is no change in your condition. Check the appropriate box(es). Add the number of boxes checked and enter the result on Line 8. Exemptions - Dependency Line 9 - Dependent Children You may claim an exemption for each dependent child who qualifies as your dependent for Federal income tax pur poses. Enter the number of your depen dent children on Line 9. Line 10 - Other Dependents You may claim an exemption for each other dependent who qualifies as your dependent for Federal income tax pur poses. Enter the number of your other dependents on Line 10. Line 11 - Dependents Attending Colleges You may claim an additional exemption for each dependent claimed on Line 9 or 10 if all the requirements below are satisfied. This exemption is not available to you or your spouse or your domestic partner. Requirements Student must be under age 22 on the last day of the tax year. (This means the student will not turn 22 until 2017 or later.) Student must attend full-time. Fulltime is determined by the institution. Student must spend at least some part of each of five calendar months of the tax year at school. The educational institution must be an accredited college or postsecondary institution, maintain a regular faculty and curriculum, and have a body of students in attendance. You must have paid one-half or more of the tuition and maintenance costs for the student. Financial aid received by the student is not calculated into your cost when totaling one-half of your dependent s tuition and maintenance. However, the money earned by students in College Work Study Programs is income and is taken into account. Enter the number of exemptions for your qualified dependents attending colleges on Line 11. Line 12 - Totals Add Lines 6, 7, 8, and 11 and enter the total on Line 12a. Add Lines 9 and 10 and enter that total on Line 12b. Line 13 - Dependents Information You must enter on Line 13 the full name, Social Security Number, and year of birth for each dependent child or other dependent claimed on Lines 9 and/or 10. If you have more than four dependents, enter the required information for the first four dependents on Lines 13a - d and enclose a statement with the return listing the information for the additional dependents. The dependents you list must be the same persons who qualify as your dependent children or other dependents for Federal income tax purposes. Enter the same Social Security Number, individual taxpayer identification number (ITIN), or adoption taxpayer identification number (ATIN) for each dependent that you entered on your Federal return. If you do not provide a valid Social Security Number, ITIN, or ATIN for a dependent claimed on Lines 9 and/or 10, the exemption will be disallowed. To get an ATIN, file Form W-7A, Application for Taxpayer Identification Number for Pending U.S. Adoptions, with the Internal Revenue Service. See page 12 for information on obtaining a Social Security Number or ITIN.

16 Form NJ-1040NR Line-by-Line Instructions Gross Income includes the following: Wages and other compensation Interest and dividends Earnings on nonqualified distributions from (1) qualified state tuition program accounts, including the New Jersey Better Educational Savings Trust Program (NJBEST) accounts, or (2) qualified state 529A Achieving a Better Life Experience Program (ABLE) accounts Net profits from business, trade, or profession Net gains or income from sale or disposition of property Pensions, annuities, and IRA withdrawals Net distributive share of partnership income Net pro rata share of S corporation income Net rental, royalty, and copyright income Net gambling winnings, including New Jersey Lottery winnings from prize amounts over $10,000 Alimony Estate and trust income Income in respect of a decedent Prizes and awards, including scholarships and fellowships (unless they satisfy the conditions on page 22) Value of residence provided by employer Fees for services rendered, including jury duty New Jersey gross income also includes the following that are not subject to Federal income tax: Interest from obligations of states and their political subdivisions, other than New Jersey and its political subdivisions Income earned from foreign employment Certain contributions to pensions and tax-deferred annuities Employee contributions to Federal Thrift Savings Funds, 403(b), 457, SEP, or any other type of retirement plan other than 401(k) Plans Gubernatorial Elections Fund The Gubernatorial Elections Fund, financed by taxpayer-designated $1 contributions, provides partial public financing to qualified candidates for the office of Governor of New Jersey. With its contribution and expenditure limits, the Gubernatorial Public Financing Program has since 1977 assisted in 70 candidacies, allowing candidates to conduct their campaigns free from the improper influence of excessive campaign contributions. Operation of the program has also permitted candidates of limited financial means to run for election to the State s highest office. As a condition of their receipt of public financing, candidates must agree to participate in two debates, which provide the public with an opportunity to hear the views of each candidate. For more information on the Gubernatorial Public Financing Program, contact the New Jersey Election Law Enforcement Commission at ELEC (toll-free within New Jersey) or or write to: NJ Election Law Enforcement Commission PO Box 185 Trenton NJ Lists of contributors to gubernatorial candidates and copies of reports filed by gubernatorial candidates are available on the Election Law Enforcement Commission website at: Participation in the $1 income tax checkoff protects the continuity and integrity of the Gubernatorial Elections Fund by providing that funds will be reserved for future gubernatorial elections, thereby deterring the use of needed funding for other purposes. If you want to designate $1 to go to help candidates for governor pay campaign expenses, check the Yes box in the Gubernatorial Elections Fund section of the return. If you are filing a joint return, your spouse may also designate $1 to this fund by checking Yes. Checking the Yes box will not in any way increase your tax liability or reduce your refund. Driver s License Number Enter your Driver s License or state Non-Driver Identification Card number, including the twoletter abbreviation of the issuing state. Providing this information is voluntary. If filing jointly, enter the number of the person whose Social Security Number is listed first on the return. If that spouse does not have an identification number, enter the other spouse s. If you and/or your spouse do not have one of these, leave the boxes blank. We may use this information to validate your identity in our effort to combat identity theft and fraudulent filing. Income (Lines 14 26) Enter on Lines 14 through 26 the amount of income received while a nonresi dent of New Jersey during the tax year for each of the various categories of income. In Column A, report your gross income from all sources (both inside and outside New Jersey). These figures cannot be copied from the figures reported on the Federal return. Reportable income means income that would be taxable if you were a New Jersey resident. Married/ civil union couples filing a joint return must report the income of both spouses in Column A, even if only one had income from New Jersey. In Column B, enter the income that comes from New Jersey sources. For every entry in Column A, there should be an entry on the corresponding line in Column B. If none of your income is from New Jersey sources, enter 0 in Column B. Your final tax liability is based on the percentage of your income from New Jersey sources. Income of a Nonresident Subject to Tax. Some examples of income taxable to a nonresident include: 1. Wages, salaries, tips, fees, commissions, bonuses, and other payments re ceived, whether in cash or in

17 Income (Lines 14 26) - property, for services performed in New Jersey; 2. Profits and other income from a business, trade, profession, or partnership conducted in New Jersey; 3. Rents or royalties from real and tangible personal property located in New Jersey or from other business activities in New Jersey; 2016 Form NJ-1040NR Line-by-Line Instructions Gains from the sale of your principal residence or other real estate located in New Jersey; 5. Gambling winnings from New Jersey sources such as winnings from a casino or racetrack located in New Jersey, including New Jersey Lottery winnings from prize amounts over $10,000; Exempt (Nonreportable) Income The following income is not taxable to residents or nonresidents. These items should not appear anywhere on your nonresident return (Column A or Column B). Federal Social Security Railroad Retirement (Tier 1 and Tier 2) United States military pensions and survivor s benefit payments Life insurance proceeds received because of a person s death Employee s death benefits Permanent and total disability, including VA benefits Temporary disability received from the State of New Jersey or as third-party sick pay Workers Compensation Gifts and inheritances Qualifying scholarships or fellowship grants New Jersey Lottery winnings from prizes in the amount of $10,000 or less Unemployment Compensation received from the state (but not supplemental unemployment benefit payments) Family Leave Insurance (FLI) benefits Interest and capital gains from: (a) Obligations of the State of New Jersey or any of its political subdivisions; or (b) Direct Federal obligations exempt under law, such as U.S. Savings Bonds and Treasury Bills, Notes, and Bonds Earnings on qualified distributions from (1) qualified state tuition program accounts, including the New Jersey Better Educational Savings Trust Program (NJBEST) accounts, or (2) qualified state 529A Achieving a Better Life Experience Program (ABLE) accounts Distributions paid by mutual funds to the extent the distributions are attributable to interest earned on Federal obligations Certain distributions from New Jersey Qualified Investment Funds Employer and employee contributions to 401(k) Salary Reduction Plans (but not Federal Thrift Savings Funds) Some benefits received from certain employer-provided cafeteria plans (but not salary reduction or premium conversion plans). See Technical Bulletin TB-39. Benefits received from certain employer-provided commuter transportation benefit plans (but not salary reduction plans). See Technical Bulletin TB-24R. Contributions to and distributions from Archer MSAs if they are excluded for Federal income tax purposes Direct payments and benefits received under homeless persons assistance programs Income tax refunds (New Jersey, Federal, and other jurisdictions) Welfare Child support Amounts paid as reparations or restitution to Nazi Holocaust victims Assistance from a charitable organization, whether in the form of cash or property Cancellation of debt Amounts received as damages for wrongful imprisonment 6. Income of a New Jersey S corporation allocated to New Jersey. Income or losses that a nonresident tax - payer receives from a business entity (i.e., sole proprietorship, partnership, LLP, or LLC) located in New Jersey will not be deemed to be derived from New Jersey sources if the business entity s only activity is the purchase, holding, or sale of intangible personal property, such as commodities or securities, and such intangible personal property is not held for sale to customers. Gross income means all income you received in the form of money, goods, property, and services unless specifically exempt by law. Important! A net loss in any category of income cannot be reported as such on Form NJ-1040NR. A loss within one category of income may be applied against other income within the same category. However, a net loss in one category of income cannot be applied against income or gains in another on Form NJ-1040NR. In case of a net loss in any category, enter 0 for that category. Under New Jersey law, no carryback or carryover of losses is permitted when reporting income on Form NJ-1040NR. Line 14 - Wages, Salaries, Tips, etc. Column A Enter the total amount you received during the tax year from wages, salaries, tips, fees, commissions, bonuses, and other pay ments received for services performed as an employee. Include all payments you received whether in cash, benefits, or property. Enter the total of State wages, salaries, tips, etc. from all employment both inside and outside New Jersey. Be sure to take the figure from the State wages box on your W-2s. (See sample W-2 on page 16.) All W-2s must be enclosed with your tax return.

18 Form NJ-1040NR Line-by-Line Instructions Line 14 - Wages, Salaries, Tips, etc. - Note: The State wages figure on W 2s you received from employment outside New Jersey may need to be adjusted to reflect New Jersey tax law. Nonresident servicepersons, see page 6. Pension and annuity income or early retirement benefits should not be included on this line but should be re ported on Line 21. Retirement Plans. Under New Jersey law, contributions to retirement plans (other than 401(k) Plans) are included in the State wages figure on the W-2 in the year the wages are earned. This may cause your State wages figure to be higher than your Federal wages figure. Meals and/or Lodging. You may ex clude from the amount reported on Line 14 meals and/or lodging reported as wages on your W-2 if: 1. The meals and/or lodging were furnished on the business premises of your employer; and 2. The meals and/or lodging were furnished for the convenience of your employer; and For lodging only: 3. You were required to accept the lodg ing as a condition of your employment. If you exclude the value of meals and/ or lodging from your wages, you must enclose a signed statement explaining how you have met these conditions. If the statement is not enclosed, your wages will be adjusted to represent the full amount shown on your W-2. Food and maintenance payments made to New Jersey State Police officers as part of their union contract cannot be ex cluded from income. These payments do not meet the criteria above. Employee Business Expenses. Employee business expenses are not deductible for New Jersey income tax purposes. However, you may exclude from the amount reported on Line 14 reimbursements for employee business expenses reported as wages on your W 2 if: 1. The expenses for which you are reimbursed are job-related expenses; 2. You are required to and do account for these expenses to your employer; and 3. You are reimbursed by your employer in the exact amount of the allowable expenses. If you receive excludable reimbursements for employee business expenses that are included in your wages on your W-2, enclose a statement explaining the amount you are excluding and your reasons for excluding this amount. Also enclose a copy of your Federal Form Federal Statutory Employees. If you are considered a statutory employee for Sample W-2 (This form is for illustration only and is not reproducible.) Void a Employee s social security number For Official Use Only OMB No b Employer identification number (EIN) 1 Wages, tips, other compensation 2 Federal income tax withheld c Employer s name, address, and ZIP code 3 Social security wages 4 Social security tax withheld 5 Medicare wages and tips 6 Medicare tax withheld 7 Social security tips 8 Allocated tips 9 d Control Number 9 10 Dependent care benefits e Employee s first name and initial Last name 11 Nonqualified plans 12a See instructions for box Statutory Retirement Third-party 12b employee plan sick pay 14 Other 12c UI/WF/SWF - $ DI - $ d DI P.P. #(Private Plan No.) f Employee s address and ZIP code 15 State Employer s state ID number 16 State wages, tips, etc. 17 State income tax 18 Local wages, tips, etc. 19 Local income tax 20 Locality name NJ /000 42, FLI P.P. # (Private Plan No.) FLI Wage and Tax Form W-2 Statement 2016 Department of the Treasury Internal Revenue Service For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions. Federal income tax purposes, you may not deduct your business expenses unless you are self-employed or an independent con tractor under New Jersey law. The Federal label of statutory employee has no meaning for New Jersey income tax purposes. Business expenses may only be deducted from the business income of a self-employed individual. See the instructions for Schedule NJ-BUS-1, Part I (Net Profits From Business). Moving Expenses. Moving expenses are not deductible for New Jersey income tax purposes. However, you may exclude from the amount reported on Line 14 reimbursements for the following moving expenses if the Federal requirements to claim moving expenses were met and the expenses were included in wages on your W The cost of moving your household goods and personal effects from the old home to the new home. 2. The actual expenses incurred by you for traveling, meals, and lodging when moving yourself and your family from your old residence to your new residence. Reimbursements for any other moving expenses may not be excluded from income. If you receive excludable reimbursements for moving expenses that are included in your wages on your W-2, enclose a state ment explaining the amount you are ex cluding and your reasons for excluding this amount. Also enclose a copy of your Federal Form Compensation for Injuries or Sickness. Certain amounts received for personal injuries or sickness are not subject to tax. You may exclude from the amount reported on Line 14 such amounts included as wages on your W-2 if: 1. The payments were compensation for wage loss that resulted from absence due to your injury or sickness; and 2. The payments were due and payable under an enforceable contrac tual obligation under the plan; and 3. The payments were not related to sick leave wage continuation, which is

19 Line 14 - Wages, Salaries, Tips, etc. - largely discretionary and payments are made regardless of the reason for absence from work. If such payments are included in the State wages figure on your W 2, you must file Form NJ-2440 with your New Jersey return to exclude them. Column B Enter the portion of your wages, salaries, etc. that comes from New Jersey sources. If zero, enter 0. Pennsylvania residents, see page 4. Nonresident servicepersons and nonmilitary spouses of military personnel, see page 6. If you had wage/salary income earned partly within and partly outside New Jersey, and you cannot easily determine the amount of income from New Jersey, see Part II on page 31. Check the box at Line 14 if you complete Lines (Part II, Allocation of Wage and Salary Income Earned Partly Inside and Outside New Jersey). Do not use Part II if your wage/salary income is based on volume (the amount of sales or amount of business trans acted). Instead, enter on Line 14 the por tion of your wage/salary income calcu lated using the following formula: NJ Vol. Vol. Income = Line 14, Col. B Total Vol. In determining where the business was transacted, the location where the ser - vices or sales were actually performed is the deciding factor. An explanation of how you computed the amount of wage/ salary income must be enclosed with your return. Line 15 - Interest Income Column A Enter all of your reportable interest from sources both inside and outside New Jersey on Line 15, Column A. New Jersey reportable interest income includes interest from the following: Banks Savings and loan associations Credit unions 2016 Form NJ-1040NR Line-by-Line Instructions 17 Savings accounts Earnings on nonqualified distributions from qualified state tuition program accounts, including the New Jersey Better Educational Savings Trust Program (NJBEST) accounts Earnings on nonqualified distributions from qualified state 529A Achieving a Better Life Experience Program (ABLE) accounts Distributions from Coverdell education savings accounts (ESAs), but only the earnings portion Checking accounts Bonds and notes Certificates of deposit Ginnie Maes Fannie Maes Freddie Macs Repurchase agreements Life insurance dividends Obligations of states and their political subdivisions, other than New Jersey Any other interest not specifically exempt If your reportable interest income on Line 15, Column A, is more than $1,500, enclose a copy of Schedule B, Federal Form 1040 or 1040A. Interest to be Reported on Other Lines. If you received interest that was earned and paid to a sole proprietorship, a partnership, an S corporation, or an estate or trust, do not include the interest on Line 15. Your portion of the interest from these sources will be included as follows: Sole proprietorship: Schedule NJ-BUS-1, Part I Partnership: Schedule NJ-BUS-1, Part III S Corporation: Schedule NJ-BUS-1, Part IV Estate or Trust: Form NJ-1040NR, Line 25 (Grantor Trusts, see the instructions for Line 25) Note: Interest paid or deemed to have been paid to you by a partnership or an S corporation and reportable to you on Form 1099 must be included on Line 15 in Column A. For more information regarding the reporting of partnership or S corporation income, see Tax Topic Bulletins GIT 9P, Income From Partnerships, or GIT 9S, Income From S Corporations. Forfeiture Penalty for Early Withdrawal. If you incur a penalty by withdrawing a time deposit early, you may subtract the amount of the penalty from your interest income. Tax-Exempt Interest Income. Do not report tax-exempt interest on Line 15. New Jersey tax-exempt interest income includes: Obligations of the State of New Jersey or any of its political subdivisions Direct Federal obligations such as U.S. Savings Bonds and Treasury Bills, Notes, and Bonds Earnings on qualified distributions from qualified state tuition program accounts, including the New Jersey Better Educational Savings Trust Program (NJBEST) accounts Earnings on qualified distributions from qualified state 529A Achieving a Better Life Experience Program (ABLE) accounts Sallie Maes CATS TIGRs Certain distributions from New Jersey Qualified Investment Funds Distributions paid by mutual funds to the extent the distributions are attributable to interest earned on Federal obligations New Jersey Qualified Investment Funds. A New Jersey Qualified Investment Fund is a regulated investment company in which at least 80% of the fund s invest ments (other than cash or receivables) are obligations issued either directly by the Federal government or the State of New Jersey or any of its political subdivisions. The Fund must complete and keep Form IF-1, Certification of Qualified Investment Fund, to document its status. This certification need not be filed with the Division of Taxation but must be made available upon request.

20 Form NJ-1040NR Line-by-Line Instructions Line 15 - Interest Income - If you received a distribution from a qualified investment fund, you may exclude from your income the portion of the distribution that comes from the qualified exempt obligations. The taxable portion of the distribution, if any, is re ported as dividends on Line 16. By February 15, shareholders should be notified by the New Jersey qualified investment fund of the portion of their distribution that may be excluded from income. Contact your broker to deter mine whether your fund qualifies. Do not report interest earned on your IRA(s) on Line 15. If you made a withdrawal from your IRA during the year, see the instructions for Line 21. For more information on tax-exempt interest income, see Tax Topic Bulletin GIT-5, Exempt Obligations. Column B Only interest received as a result of a business or profession carried on in New Jersey and not properly reportable as net profits from business, distributive share of partnership income, net income from estates or trusts, or net pro rata share of S corporation income should be reported on Line 15, Column B. (See instructions for Line 15, Column A.) Do not report interest from personal accounts. Line 16 - Dividends Column A Enter on Line 16, Column A, the amount of dividends received during the year from investments (e.g., from stocks, mutual funds) or other income-producing activities that do not constitute a trade or business. The total amount of divi dends received, regardless of where earned, must be reported. Dividends to be Reported on Other Lines. If you received dividends that were earned and paid to a sole proprietorship, a partnership, an S corporation, or an estate or trust, do not include the dividends on Line 16. Your portion of the dividends from these sources will be included as follows: Sole proprietorship: Schedule NJ-BUS-1, Part I Partnership: Schedule NJ-BUS-1, Part III S Corporation: Schedule NJ-BUS-1, Part IV Estate or Trust: Form NJ-1040NR, Line 25 (Grantor Trusts, see the instructions for Line 25) For more information regarding the reporting of partnership income or S corporation income and distributions, see Tax Topic Bulletins GIT-9P, Income From Partnerships, or GIT-9S, Income From S Corporations. Capital Gains Distributions. Capital gains distributions you receive from mutual funds or other regulated investment com panies are reported on Line 58, Part I and are not to be included as dividends. Tax-Free Distributions. A distribution that is a return of your investment or capital and does not come from earnings or profits is a nontaxable capital or tax-free distribution. These distributions reduce the basis of the stock or invest ment and are not taxable until your in vestment is fully recovered. Insurance Premiums. Dividends received from insurance companies are not taxable unless the dividends received exceed the premiums paid. Any interest from accumulated insurance dividends must be reported on Line 15, Column A. Column B Only dividends received as a result of a business or profession carried on in New Jersey and not properly reportable as net profits from business, distributive share of partnership income, net income from estates or trusts, or net pro rata share of S corporation income should be reported on Line 16, Column B. (See instructions for Line 16, Column A.) Do not report dividends from personally held securities. Line 17 - Net Profits From Business Column A Complete Part I of New Jersey Schedule NJ-BUS-1, Business Income Summary Schedule, and enter on Line 17, Column A, the amount of net profits from business from Line 4 of Part I. If the amount on Line 4 is a loss, enter 0 on Line 17, Column A. Enclose Schedule NJ-BUS-1 and a copy of the Federal Schedule C (or C EZ or F) for each business with your return (see page 32). Column B Enter the portion of your business in come that comes from New Jersey sources. If zero, enter 0. If you carry on business both inside and outside New Jersey, you must complete and enclose Form NJ-NR-A for each business. Do not include in Column B net profits (or losses) that you received from a business entity located in New Jersey if the business entity s only activity is the purchase, holding, or sale of intangible personal property, such as securities or commodities, and such intangible personal property is not held for sale to custom ers. You must, however, include such net profits in Column A. Anyone engaged in a business, trade, profession, or occupation in New Jersey must register with the State for tax purposes by filing a Business Registration Application, Form NJ-REG. Form NJ REG may be filed online through the Division of Revenue and Enterprise Services NJ Business Gateway Services at: Line 18 - Net Gains or Income From Disposition of Property Column A Enter on Line 18, Column A, the amount of net gains from Part I, Line 60. If the amount on Line 60 is zero, enter 0 on Line 18, Column A (see page 31). Column B Enter the net gains or income from New Jersey sources. If zero, enter 0. Line 19 - Net Gains or Income From Rents, Royalties, Patents, and Copyrights Column A Complete Part II of New Jersey Schedule NJ-BUS-1, Business Income Summary Schedule, and enter on Line 19, Column A, the amount of net income

21 2016 Form NJ-1040NR Line-by-Line Instructions 19 Line 19 - Net Gains or Income From Rents, Royalties, Patents, and Copyrights - from Line 4 of Part II. If the amount on Line 4 is a loss, enter 0 on Line 19, Column A. Enclose Schedule NJ-BUS-1 with your return (see page 32). Column B Enter your net gains or income from New Jersey sources. If zero, enter 0. Line 20 - Net Gambling Winnings New Jersey Lottery winnings from prize amounts over $10,000 are taxable for New Jersey income tax purposes. The individual prize amount, not the total amount of New Jersey Lottery winnings over the year, determines taxability. For more information, see Technical Bulletin TB-20(R). Column A Enter on Line 20, Column A, the amount of your net gambling winnings from both inside and outside New Jersey. You may deduct your gambling losses from your winnings that occurred during the same year. You may use New Jersey Lottery losses to offset other gambling winnings. If your net gambling winnings are less than zero, enter 0. You must be able to substantiate gambling losses used to offset winnings reported on your New Jersey nonresident income tax return. Evidence of losses may take several forms, including a daily log or journal of wins and losses, canceled checks, losing pari-mutuel tickets, losing lottery tickets, etc. With respect to winnings or losses resulting from casino gambling, letters from casinos that purport to rate the gambling activity of an individual or estimate losses are acceptable as part of the evidential material required to prove losses. Winnings or losses from lot teries may be reported on this line. Re member, do not include any winnings from prizes in the amount of $10,000 or less from the New Jersey State Lottery. Although no specific rider to the New Jersey income tax return is required to substantiate gambling losses, it is sug gested that if you enter gambling win nings net of losses on Line 20 of the return, you should note the total win n ings and total losses on a supporting schedule. This procedure may eliminate certain questions in the event the return is selected for audit. Column B Enter your net gambling winnings from New Jersey sources. Gambling losses incurred from sources outside New Jersey may not be used to offset gambling winnings from New Jersey sources. If zero, enter 0. Line 21 - Pensions, Annuities, and IRA Withdrawals Column A Enter on Line 21, Column A, your reportable pensions, annuities, and certain IRA withdrawals. See page 21 for information on Roth IRAs. Pen sions, annuities, and IRA withdrawals are reportable on the New Jersey return, al though the reportable amount may differ from the Federal amount. If you (and/or your spouse if filing jointly) were 62 or older or disabled and met the other requirements, you may be able to use the pension and other retirement income exclusions to reduce your income. (See the instructions for Line 27a and Line 27b.) All state and lo cal government, teachers, and Federal pensions, and Keogh Plans are treated in the same manner as pensions from the private sector. Amounts received as early retirement benefits and amounts received as pension on Schedule NJK-1, Partnership Return Form NJ 1065, are also reportable. Social Security and Railroad Retirement benefits Worksheet A Which Pension Method to Use are exempt from New Jersey in come tax and should not be reported as pension income on Form NJ-1040NR. Pension payments re ceived by reason of total and permanent disability are also exempt. However, if you retired before age 65 on a total and permanent disability pension and continue to receive pension payments after age 65, your disability pension is then treated as an ordinary pension. (See definition of disabled on page 13.) If you are receiving a United States military pension or survivor s benefit payments, the military pension or survivor s benefit is exempt from New Jersey income tax regardless of your age or disability status. Do not include such payments on Form NJ-1040NR. Military pensions are those resulting from service in the Army, Navy, Air Force, Marine Corps, or Coast Guard. This exemption does not apply to civil service pensions or annuities, even if the pension or annuity is based on credit for military service. Most military pensions and survivor s benefit payments are received from the U.S. Defense Finance and Accounting Service, while a civil serv ice annuity is received through the U.S. Office of Personnel Management. Retirement plans (pensions, annuities, IRAs) are either noncontributory or contributory. A noncontributory plan is one to which you have not made contributions. A contributory plan is one to which you have made contributions, usually through payroll deductions. The amount you report on Line 21, Col umn A, will depend on whether or not you made contributions to the plan. 1. Amount of pension you will receive during the first three years (36 months) from the date of the first payment Your contributions to the plan Subtract line 2 from line (a) If line 3 is 0 or more, and both you and your employer contributed to the plan, you may use the Three-Year Rule Method. (b) If line 3 is less than 0, or your employer did not contribute to the plan, you must use the General Rule Method. (Keep for your records)

22 Form NJ-1040NR Line-by-Line Instructions Line 21 - Pensions, Annuities, and IRA Withdrawals - Noncontributory Plans. Amounts you receive from noncontributory plans are fully reportable. Include on Line 21, Column A, the total amount of the pen sion or annuity from your 1099-R. Contributory Plans (Other Than IRAs). The total value of your pension or annu ity consists of your contributions, your employer s contributions (if any), and earnings. In general, your contributions to a pension or annuity were taxed when they were made and are not reportable when withdrawn (except for 401(k) Plans). You must determine the reportable part of any distribution you receive. Use Worksheet A on page 19 to determine whether you should use the Three-Year Rule Method or the General Rule Method for your pension or annuity. Note: If you received a distribution from a 401(k) Plan, see the section on 401(k) Plans before continuing. The reportable amount of an IRA withdrawal must be determined by completing Worksheet C, IRA Withdrawals, on page 21. Do not use Worksheet A or B for an IRA withdrawal. Three-Year Rule Method. If you will recover your contributions within three years from the date you receive the first payment from the plan, and both you and your employer contributed to the plan, you may use the Three-Year Rule Method Worksheet B General Rule Method 1. Your previously taxed contributions to the plan Expected return on contract* Percentage excludable (Divide line 1 by line 2) % 4. Amount received this year Amount excludable (Multiply line 4 by line 3) Reportable amount (Subtract line 5 from line 4). Enter here and on Line 21, Form NJ-1040NR *The expected return on the contract is the amount receivable. If life expectancy is a factor under your plan, Federal actuarial tables must be used to compute the expected return. The Federal actuarial tables are contained in the Internal Revenue Service s Publication 939, General Rule for Pensions and Annuities. Contact the IRS for this publication. If life expectancy is not a factor under your plan, the expected return is found by totaling the amounts to be received. (Keep for your records) to determine your New Jersey reportable pension income. The Three-Year Rule allows you to exclude your pension and annuity payments from income until the payments you receive equal your contributions to the plan. Until that time, the amounts you receive, because they are considered your contributions, are not reportable and should not be entered on your return. Once you have received (recovered) an amount equal to the amount you contributed, the payments you receive are fully reportable. Since the Three-Year Rule has been repealed for Federal income tax purposes, if you retired after July 1, 1986, the reportable amount of pension or annuity that you enter on your New Jersey return when using this method will differ from the amount you report on your Federal return. General Rule Method. If you will not recover your contributions within three years from the date you receive the first payment from the plan, or your employer did not contribute to the plan, you must use the General Rule Method to determine your New Jersey reportable pension income. From the first year you receive your pension and every year thereafter, part of your pension will be excludable (the amount that represents your contributions) and part will be reportable. Use Worksheet B above to determine the reportable amount. Complete Worksheet B the year in which you receive your first pension payment. Once calculated, use the percentage on line 3 to determine the reportable amount year after year. You must recalculate the percentage only if your annual pension payments decrease. 401(k) Plans. Beginning on January 1, 1984, New Jersey s treatment of 401(k) Plan contributions changed. After that date, employee contributions to 401(k) Plans were no longer included in taxable wages when earned. If you made contri butions to your 401(k) Plan prior to January 1, 1984, your distribution will be treated differently than if you made all of your contributions after this date. 1. All contributions made on or after Janu ary 1, If all of your contribu tions to the 401(k) Plan were made on or after January 1, 1984, then your dis tributions from the plan are fully re port able unless your contributions ex ceeded the Federal limit. 2. Contributions made before January 1, If you made contributions to the 401(k) Plan before January 1, 1984, or you made contributions beyond the Federal limit, calculate the reportable portion of your distributions from the plan using one of the methods described under contributory plans. Lump-Sum Distributions and Rollovers. When a lump-sum distribution of the entire balance from a qualified employee pension, annuity, profit-sharing, or other plan is made, the amount received in excess of the contributions to the plan that have already been taxed must be included in your income in the year received. New Jersey has no provisions for income averaging of lump-sum distributions. Enter the reportable amount of a lump-sum distribution on Line 21, Column A. A lump-sum distribution from an IRA or a qualified employee pension or annuity plan that you roll over into an IRA or other eligible plan is excludable from New Jersey income if the rollover qualifies for deferral for Federal income tax purposes. The amount rolled over (minus previously taxed contributions)

23 Line 21 - Pensions, Annuities, and IRA Withdrawals Form NJ-1040NR Line-by-Line Instructions 21 Part I 1. Value of IRA on 12/31/16. Include contribu tions made for the tax year from 1/1/17 4/15/ Total distributions from IRA during the tax year. Do not include tax-free rollovers Total value of IRA. Add lines 1 and Unrecovered Contributions: Complete either line 4a or 4b: 4a. First year of withdrawal from IRA: Enter the total of IRA contributions that were previously taxed... 4a. 4b. After first year of withdrawal from IRA: Complete Part II. Enter amount of unrecovered contributions from Part II, line (g)*... 4b. 5. Accumulated earnings in IRA on 12/31/16. Subtract either line 4a or 4b from line Divide line 5 by line 3 and enter the result as a decimal Taxable portion of this year s withdrawal. Multiply line 2 by decimal amount on line 6. Enter here and on Line 21, Column A, Form NJ-1040NR Worksheet C - IRA Withdrawals 2016 Part II Unrecovered Contributions (For Second and Later Years) (a) Last year s unrecovered contributions. From line 4 of last year s worksheet *... (a) (b) Amount withdrawn last year. From line 2 of last year s worksheet... (b) (c) Taxable portion of last year s withdrawal. From line 7 of last year s worksheet... (c) (d) Contributions recovered last year. Subtract line (c) from line (b)... (d) (e) This year s unrecovered contributions. Subtract line (d) from line (a)... (e) (f) Contributions to IRA during current tax year. Do not include tax-free rollovers... (f) (g) Total unrecovered contributions. Line (e) plus line (f). Enter here and on Part I, line 4b... (g) * If you did not complete a worksheet in prior year(s), skip Part II and calculate the amount of unrecovered contributions as follows: A. Determine the total amount of withdrawal(s) made from the IRA in previous years. B. Total the portion(s) of these previous year withdrawal(s) already reported as income on prior New Jersey tax returns. C. Subtract the amount of previous year withdrawals reported (B) from the total amount of previous year withdrawals (A). This difference is the amount of contributions that have been recovered thus far. D. Subtract the amount of recovered contributions (C) from the total amount of contributions made to the IRA. This is the amount of unrecovered contributions to enter on line 4b of Part I. (Keep for your records) is reportable later when it is withdrawn. As under Federal law, the rollover must be made within the 60-day period after distribution. For more information on reporting pension and annuity income on your New Jersey return, see Tax Topic Bulletin GIT-1, Pensions and Annuities. IRAs. Your IRA consists of a nonreportable part (your contributions) and a reportable part (earnings plus certain amounts, if any, rolled over from pension plans). If your contributions have been previ ously taxed, only the portion of your distribution that represents earnings is reportable. Earnings credited to an IRA are not reportable until withdrawn. The interest, dividends, and other earnings, as well as amounts that were tax-free rollovers, will become reportable when withdrawn. If the total amount in the IRA is with drawn, the entire amount of the interest or accumulated gains becomes reportable in the year the withdrawal is made. If, how ever, the withdrawal from an IRA is made over a period of years, the portion of the annual distribution that represents interest income and accumulated gains in the IRA is reportable. A distribution from a rollover IRA that is fully reportable for Federal income tax purposes may be treated differently for New Jersey purposes if your contributions were subject to New Jersey income tax when the contributions were made. Enter the reportable amount of an IRA withdrawal on Line 21. Use Worksheet C above to determine the reportable portion of your IRA withdrawal. For multiple IRAs, you may use a separate worksheet for each IRA, or you may combine all IRAs on one worksheet. Roth IRAs. Contributions to a Roth IRA are reportable as part of your income in the year they are made. How ever, if the requirements are satisfied, qualified distributions from a Roth IRA are excludable and do not have to be included as

24 Form NJ-1040NR Line-by-Line Instructions Line 21 - Pensions, Annuities, and IRA Withdrawals - income on Line 21, Column A, of Form NJ 1040NR. A qualified distribution is one made after the five-year period beginning with the first tax year for which a contribution was made to your IRA, and that is: 1. Made on or after the date on which an individual reaches age 59½; or 2. Made to a beneficiary (or the individual s estate) after the individual s death; or 3. Made because the individual becomes disabled; or 4. Made as a qualified first-time home buyer distribution as defined by the Internal Revenue Code. A payment or distribution cannot be treated as a qualified distribution if it is made within the five-year period that begins with the year the first contribution was made. A payment or distribution of an allowable rollover contribution (or income earned on the amount rolled over) from an IRA other than a Roth IRA, is not a qualified distribution if it is made within the five-year period that begins with the year the rollover contribution was made. If you received a nonqualified distribution from a Roth IRA, you must report the earnings as income on Line 21, Column A. If you converted an existing IRA to a rollover Roth IRA during tax year 2016, any amount from the existing IRA that would be reportable if withdrawn must be reported in your income on Line 21, Column A. For more information on IRA withdrawals, see Tax Topic Bulletin GIT-2, IRA Withdrawals, or Technical Bulletin TB-44. Column B Pension, annuity, and IRA withdrawal income is not taxable to nonresidents. Therefore, no entry is necessary on Line 21, Column B. Line 22 - Distributive Share of Partnership Income Column A Complete Part III of New Jersey Schedule NJ-BUS-1, Business Income Summary Schedule, and enter on Line 22, Column A, the distributive share of partnership income from Line 4 of Part III. If the amount on Line 4 is a loss, enter 0 on Line 22, Column A. Enclose Schedule NJ-BUS-1 and a copy of Schedule NJK-1, Form NJ-1065, for each partnership with your return. If you did not receive a Schedule NJK-1, you must enclose a copy of the Federal Schedule K-1 (see page 33). Column B Enter the portion of the partnership income that comes from New Jersey sources. If zero, enter 0. Do not include in Column B distributive share of partnership income that you received from a partnership, LLP, or LLC located in New Jersey if the business entity s only activity is the purchase, holding, or sale of intangible personal property, such as commodities or securities, and such intangible personal property is not held for sale to customers. You must, however, include such partnership income in Column A. Line 23 - Net Pro Rata Share of S Corporation Income Column A Complete Part IV of New Jersey Schedule NJ-BUS-1, Business Income Summary Schedule, and enter on Line 23, Column A, the net pro rata share of S corporation income from Line 4 of Part IV. If the amount on Line 4 is a loss, enter 0 on Line 23, Column A. Enclose Schedule NJ-BUS-1 and a copy of Schedule NJ-K-1, Form CBT-100S, for each S corporation with your return. If you did not receive a Schedule NJ-K-1, you must enclose a copy of the Federal Schedule K-1 (see page 33). Column B Enter the portion of the net pro rata share of S corporation income that comes from New Jersey sources. If zero, enter 0. Line 24 - Alimony and Separate Maintenance Payments Received Column A Enter on Line 24, Column A, the total amount of alimony and separate maintenance payments you received that were required under a decree of divorce/dissolution or separate maintenance. Do not include payments received for child support. Column B Enter 0 on Line 24, Column B. Line 25 - Other Column A Enter on Line 25, Column A: Amounts Received as Prizes and Awards. A prize won in a raffle, drawing, television or radio quiz show, contest, or any other event is reportable and must be included on Line 25, Column A. Any prizes or awards received in goods or services must be included as income at fair market value. Income in Respect of a Decedent. If you had the right to receive income that the deceased person would have received had he or she lived, and the income was not included on the decedent s final return, you must report the income on your own return when you receive it. The income is reported on Line 25, Other income. Enclose a schedule of the items of income reported together and included on Line 25. Income From Estates and Trusts. Beneficiaries receiving income from an estate or trust must include on Line 25 the Total Distribution reported on Schedule NJK-1, Form NJ If a Schedule NJK-1 was not received, include on Line 25 the net of the items listed on the Federal Schedule K-1 received. Interest, dividends, capital gains, business or partnership in come, etc. as listed on the Federal K 1(s) must be adjusted to reflect New Jersey tax law and then netted together before inclusion on Line 25, Other income. Be sure to include income that is not subject to Federal income tax but is subject to New Jersey income tax, such as interest from and losses on the disposition of obligations

25 Line 25 - Other - of states and their political subdivisions, other than New Jersey and its political subdivisions, and exclude income and losses not subject to New Jersey tax, such as gains on New Jersey tax-exempt securities. For tax years beginning on or after January 1, 2004, New Jersey income tax law has uncoupled from certain changes in Federal depreciation and expense deduction limits. The Gross Income Tax Depreciation Adjustment Worksheet GIT-DEP instructions explain the New Jersey adjustments required to determine income reportable in the various net income categories. For tax years beginning after December 31, 2004, New Jersey income tax law has uncoupled from some provisions of the IRC section 199 deduction. The New Jersey allowable IRC section 199 deduction must be calculated on Form 501-GIT, Domestic Production Activities Deduction. Enclose a copy of the NJK-1(s) or Federal K 1(s). If the income from a grantor trust is reportable by or taxable to the grantor for Federal income tax purposes, it is also tax able to the grantor for New Jersey income tax purposes. The grantor must report the interest, dividends, capital gains, business income, partnership income, net pro rata share of S corporation income, etc. in the categories of income as required for New Jersey purposes and not as income from Estates and Trusts. Enclose a copy of the New Jersey or Federal Grantor Trust Attachment. For more information, see Tax Topic Bulletin GIT-12, Estates and Trusts. Scholarships and Fellowships. Scholarships and fellowship grants are reportable and must be included on Line 25, Column A, unless they satisfy all of the following conditions: 1. The primary purpose of the grant is to further the recipient s education or training; and 2. The grant neither represents payments for past, present, or future services nor payments for services that are subject 2016 Form NJ-1040NR Line-by-Line Instructions 23 to the direction or supervision of the grantor (e.g., a fellowship given in exchange for teaching); and 3. The grant is not for the benefit of the grantor. Residential Rental Value or Allowance Paid by Employer. Enter on Line 25, Column A, either the rental value of a residence furnished by an employer or the rental allowance paid by an employer to provide a home. The rental value of the residence furnished is excludable and should not be reported if: 1. The lodging is provided on the business premises of the employer; and 2. The lodging is furnished for the convenience of the employer; and 3. The employee is required to accept such lodging as a condition of employment. Other. Enter on Line 25, Column A, the amount of any reportable income for which a place has not been provided elsewhere on the return. Income from sources both legal and illegal is subject to tax. Column B Enter the portion of your other income that comes from New Jersey sources. If zero, enter 0. Amounts Received as Prizes and Awards. Do not include in Column B a prize won in a raffle, drawing, television or radio quiz show, or contest. These amounts, although not taxable for New Jersey nonresidents, are reported and included on Line 25, Column A. Income From Estates and Trusts. Include on Line 25 the Total New Jersey Source Income Distributed reported on Schedule NJK-1, Form NJ If a Schedule NJK-1 was not received, include on Line 25 the net of the New Jersey source income listed on the Federal Schedule K-1 form. Do not include in Column B income you receive from an estate or trust if the estate or trust received such income from a busi ness entity (i.e., sole proprietorship, part nership, LLP, or LLC) located in New Jersey and the only activity of the business entity is the purchase, holding, or sale of intangible personal property, such as commodities or securities, and such intangible personal property is not held for sale to customers. You must, however, in clude such income in Column A. Line 26 - Total Income Column A Enter on Line 26, Column A, the total of Lines 14 25, Column A. Column B Enter on Line 26, Column B, the total of Lines 14 25, Column B. Line 27a - Pension Exclusion Column A You qualify for the New Jersey pension exclusion if: You (and/or your spouse if filing jointly) were 62 or older or disabled as defined by Social Security guidelines on the last day of the tax year; and Total income from Line 26, Column A, for the entire year was $100,000 or less. Note: If the amount on Line 26, Col umn A, is more than $100,000, you are not eligible for the pension exclusion. You may still be eligible for a special exclusion of up to $6,000. See the instructions for Line 27b to determine if you qualify for this special exclusion. Maximum Pension Exclusion Amount: For Filing Status: $20,000 Married/CU couple, filing joint return $15,000 Single Head of household Qualifying widow(er)/surviving CU partner $10,000 Married/CU partner, filing separate return

26 Form NJ-1040NR Line-by-Line Instructions Lines 27a - Pension Exclusion - Worksheet D Other Retirement Income Exclusion Age Requirement: 62 or older Part-year nonresidents, do not complete this worksheet. (See instructions on page 4.) Part I Unclaimed Pension Exclusion Is total income from Line 26, Column A, NJ-1040NR for the entire year MORE than $100,000? Yes. Do not complete Part I. Enter 0 on line 8 and continue with Part II. No. Continue with line Enter the amount from Line 14, Col. A, NJ-1040NR Enter the amount from Line 17, Col. A, NJ-1040NR Enter the amount from Line 22, Col. A, NJ-1040NR Enter the amount from Line 23, Col. A, NJ-1040NR Add lines 1, 2, 3, and Is the amount on line 5 MORE than $3,000? Yes. Enter 0 on line 8 and continue with Part II. No. Continue with line Enter: if your filing status is: $20,000 Married/CU couple, filing joint return $15,000 Single; Head of household; Qualifying widow(er)/ surviving CU partner $10,000 Married/CU partner, filing separate return Enter amount from Line 27a, Column A, NJ-1040NR Unclaimed Pension Exclusion. Subtract line 7 from line 6. If zero, enter 0. Continue with Part II Part II Special Exclusion 9a. Are you (and/or your spouse if filing jointly) now receiving, or will you (and/ or your spouse if filing jointly) ever be eligible to receive Social Security or Railroad Retirement Benefits? No Continue with item 9b Yes Enter 0 on line 9 and continue with line 10 9b. Would you (and your spouse if filing jointly) be receiving or ever be eligible to receive Social Security or Railroad Retirement Benefits if you had participated in either program? No Enter 0 on line 9 and continue with line 10 Yes Enter on line 9 the amount of exclusion for your filing status shown below and continue with line 10 Enter: if your filing status is: $ 6,000 Married/CU couple, filing joint return; Head of household; Qualifying widow(er)/surviving CU partner $ 3,000 Single; Married/CU partner, filing separate return Your Other Retirement Income Exclusion Add lines 8 and 9. Enter here and on Line 27b, Column A and Column B, NJ-1040NR (Keep for your records) If you qualify for the pension exclusion, you may exclude all or a part of the income you received during the year from tax able pensions, annuities, and IRA withdrawals. You may exclude up to the maximum amount for your filing status (see Maximum Pension Exclusion chart on page 23). Enter on Line 27a, Column A, the lesser of the amount reported on Line 21, Column A, or the amount next to your filing status from the chart on page 23. The amount on Line 27a should never be more than the amount on Line 21. (Partyear nonresidents, see page 4). When you and your spouse file a joint return and only one of you is 62 or older or disabled, you may still claim the maximum pension exclusion. However, only the pension, annuity, or IRA withdrawal of the spouse who is 62 or older or disabled may be excluded. If you and/or your spouse were 62 or older on the last day of the tax year and the maximum pension exclusion amount for your filing status is more than the amount of your reportable pension, or you did not use the pension exclusion because you did not report any taxable pensions, annuities, and IRA withdrawals, you may still qualify for other income exclusions. (See the instructions for Line 27b, Other Retirement Income Exclusion. ) Part-year nonresidents, see page 4. Column B Pension, annuity, and IRA withdrawal income is not taxable to nonresidents. Therefore, no entry is necessary on Line 27a, Column B. Line 27b - Other Retirement Income Exclusion If you (and/or your spouse if filing jointly) were 62 or older on the last day of the tax year, you may qualify to exclude other income on Line 27b. There are two parts to the total exclusion: Part I, the unclaimed portion of your pension exclusion, and Part II, a special exclusion for taxpayers who are unable to receive Social Security or Railroad Retirement

27 2016 Form NJ-1040NR Line-by-Line Instructions 25 Line 27b - Other Retirement Income Exclusion - benefits. Each part has different eligibility requirements. Use Worksheet D on page 24 to calculate the total exclusion amount you are eligible to claim. If you were a part-year nonresident, do not complete the work sheet (see page 4). I. Unclaimed Pension Exclusion. You are eligible to use the unclaimed portion of your pension exclusion on Line 27b if: You (and/or your spouse if filing jointly) were 62 or older on the last day of the tax year; and Total income from Line 26, Column A, for the entire year was $100,000 or less; and Income from wages, net profits from business, distributive share of partnership income, and net pro rata share of S corporation income totaled $3,000 or less; and You did not use the maximum pension exclusion on Line 27a (your taxable pension, annuity, or IRA withdrawal was less than the exclusion amount for your filing status or you did not receive pension, annuity, or IRA withdrawal income). II. Special Exclusion for Taxpayers Unable to Receive Social Security or Railroad Retirement Benefits. This benefit is not related to the pension exclusion and, if you qualify, you may claim it whether or not you use the maximum pension exclusion. You qualify for this additional exclusion on Line 27b if: You (and/or your spouse if filing jointly) were 62 or older on the last day of the tax year; and You (and your spouse if filing jointly) are unable to receive Social Security or Railroad Retirement benefits, but would have been eligible for benefits had you fully participated in either program. Note: When you and your spouse file a joint return and only one of you is 62 or older, you may claim the full exclusion. However, only the income of the spouse who is age 62 or older may be excluded. For more information on using the income exclusions on Line 27b, see Tax Topic Bulletin GIT-1, Pensions and Annuities. Line 27c - Total Exclusion Amount Column A Add Line 27a and Line 27b, Column A, and enter the total on Line 27c, Column A. Column B Enter on Line 27c, Column B, the amount from Line 27b, Column B. Line 28 - Gross Income Column A Subtract Line 27c, Column A, from Line 26, Column A, and enter the result on Line 28, Column A. If zero or less, enter 0. If you were a nonresident for the entire year and the amount on Line 28, Column A, is $20,000 or less ($10,000 if filing status is single or married/cu partner, filing separate return), you have no tax liability to New Jersey and no return must be filed. However, you must file a return in order to get a refund of taxes withheld or estimated payments made. Enter zero on Lines 37 and 38 and complete the return. If you were a New Jersey resident for any part of the year, see Part-Year Nonresidents on page 4. You may claim an exemption from withholding if you expect to have no New Jersey income tax liability for the tax year because your gross income will be equal to or less than the filing threshold amount. Complete Form NJ-W4 and submit it to your employer to claim the exemption. Column B Subtract Line 27c, Column B, from Line 26, Column B, and enter the result on Line 28, Column B. If zero or less, enter 0. Line 29 - Gross Income Column A Enter on Line 29, Column A, the gross income from Line 28, Column A, page 1. Column B Enter on Line 29, Column B, the gross income from Line 28, Column B, page 1. Exemptions and Deductions (Lines 30 36) New Jersey allows deductions only for: Personal exemptions (Line 30) Certain medical expenses (Line 31) Qualified Archer medical savings account (MSA) contributions (Line 31) Health insurance costs of the selfemployed (Line 31) Alimony and separate maintenance payments (Line 32) Qualified conservation contributions (Line 33) A Health Enterprise Zone deduction for taxpayers who own a qualified medical or dental practice (Line 34) An alternative business calculation adjustment for taxpayers with business losses (Line 35) No deduction is allowed for adjustments taken on the Federal return such as employee business expenses, IRA contributions, and Keogh Plan contributions. However, be sure to keep records of all contributions to IRAs and Keogh Plans. You will need this information when you make withdrawals in future years. Part-year nonresidents, see page 4. Line 30 - Total Exemption Amount Calculate your total exemption amount as follows (part-year nonresidents, see page 4): From Line 12a $1,000 = From Line 12b $1,500 = Total Exemption Amount Enter the number of exemptions from Line 12a, Form NJ-1040NR. Multiply the number by $1,000 and enter the result. Enter the number of exemptions from Line 12b, Form NJ-1040NR. Multiply the number by $1,500 and enter the result.

28 Form NJ-1040NR Line-by-Line Instructions Line 30 - Total Exemption Amount - Add together the exemption amounts calculated on page 25 and enter the total on Line 30, Form NJ-1040NR. Line 31 - Medical Expenses You may deduct certain medical expenses that you paid during the year for yourself, your spouse or domestic partner, and your dependents. However, you cannot deduct expenses for which you were reimbursed. Only expenses that exceed 2% of your income may be deducted. You may also deduct qualified Archer MSA contributions and certain health insurance costs if you are self-employed. Use Worksheet E below to calculate your deduction. Allowable Medical Expenses. Medical expenses means nonreimbursed payments for costs such as: Physicians, dental, and other medical fees Prescription eyeglasses and contact lenses Hospital care Nursing care Medicines and drugs Prosthetic devices X rays and other diagnostic services conducted by or directed by a physician or dentist Amounts paid for trans portation primarily for and essential to medical care Insurance (including amounts paid as premiums under Part B of Title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care As a general rule, medical expenses allowed for Federal income tax purposes will be allowed for New Jersey income tax purposes. Note: Do not include on line 1, Worksheet E Contributions you made to an Archer MSA or any amounts paid or disbursed from an Archer MSA that have been excluded from income; or Any amounts taken as a deduction on line 5, Worksheet E, for the health insurance costs of the self-employed. Archer MSA Contribu tions. Enter on line 4, Worksheet E, the amount of your qualified contributions from Federal Form New Jersey follows the Federal rules for this deduction. Your contribution may not exceed 75% of the amount of your annual health plan deductible (65% if you have a self-only plan). Enclose Federal Form 8853 with your return. Excess contributions that you withdraw before the due date of your tax return are not taxable. However, you must report the earnings associated with the ex cess contributions you withdraw as wages on Line 14, Column A and Column B. Self-Employed Health Insurance Deduction. If you are considered a selfemployed individual for Federal income tax purposes, or you received wages in 2016 from an S corporation in which you were a more-than-2% shareholder, you may deduct the amount you paid during the year for health insurance for yourself, your spouse or domestic partner, and your dependents. The amount of the deduction may not exceed the amount of your earned income, as defined for Federal income tax purposes, derived from the business under which the insurance plan is established. You may not deduct any amounts paid for health insurance coverage for any month during the year in which you were eligible to participate in any subsidized health plan maintained by Worksheet E Deduction for Medical Expenses your (or your spouse s or domestic partner s) employer. Note: For Federal purposes you may be able to deduct amounts paid for health insurance for any child of yours who was under age 27 at the end of However, for New Jersey purposes you may deduct such amounts only if the child was your dependent. For more information see Technical Advisory Memorandum TAM Line 32 - Alimony and Separate Maintenance Payments Enter on Line 32 the amount of alimony and separate maintenance paid that was required under a decree of divorce/dissolution or separate maintenance. Do not include payments for child support. Line 33 - Qualified Conservation Contributions Enter on Line 33 the amount of any contribution you made for conservation purposes of a qualified real property interest in property located in New Jersey. The amount of the deduction is the amount of the contribution allowed as a deduction in computing your taxable income for Federal income tax purposes. If you are required to file Federal Form 8283 with your Federal 1040, enclose a copy. 1. Total nonreimbursed medical expenses Enter Line 29, Column A, Form NJ-1040NR.02 = Medical Expenses Deduction. Subtract line 2 from line 1 and enter result here. If zero or less, enter zero Enter the amount of your qualified Archer MSA contributions from Federal Form Enter the amount of your self-employed health insurance deduction Total Deduction for Medical Expenses. Add lines 3, 4, and 5. Enter the result here and on Line 31, Form NJ-1040NR. If zero, enter zero here and make no entry on Line 31, Form NJ-1040NR (Keep for your records)

29 2016 Form NJ-1040NR Line-by-Line Instructions 27 Line 34 - Health Enterprise Zone Deduction Eligible taxpayers engaged in providing primary care medical and/or dental services at a qualified practice located in or within five miles of a designated Health Enterprise Zone (HEZ), enter the amount of your HEZ deduction on Line 34. Partners and S corporation shareholders of a qualified practice, enter the HEZ deduction amount listed on Schedule NJK-1, Form NJ 1065, or Schedule NJ K 1, Form CBT-100S. Sole proprietors must enclose a schedule with the return showing how they calculated the amount of their HEZ deduction for Line 34. For information on eligibility requirements and how to calculate the HEZ deduction, see Technical Bulletin TB-56. Line 35 - Alternative Business Calculation Adjustment If you completed Schedule NJ-BUS-1 and had a loss on Line 4 of either Part I, II, III, or IV, you may be eligible for an income adjustment. You may also be eligible if you had a loss carryforward on Schedule NJ-BUS-2 from a prior year. Complete Schedule NJ-BUS-2, Alternative Business Calculation Adjustment. Enter on Line 35 the amount from Schedule NJ-BUS-2, Line 11. Enclose a copy of Schedule NJ-BUS-2 with your return and keep a completed copy for your records. You may need the information from this schedule to complete your return in future years. Line 36 - Total Exemptions and Deductions Enter on Line 36 the total of Lines 30, 31, 32, 33, 34, and 35. Line 37 - Taxable Income Subtract Line 36 from Line 29, Column A, and enter the result on Line 37. If Line 37 is zero or less, enter 0. Line 38 - Tax on Amount on Line 37 Compute your tax by using one of the following methods. Tax Table. If your taxable income from all sources on Line 37 is less than $100,000, you may use the New Jersey Tax Table on page 34 or the New Jersey Tax Rate Schedules on page 43 to find your tax. When using the tax table, be sure to use the correct column. After you have found your tax, enter the amount on Line 38. Tax Rate Schedules. You must use the New Jersey Tax Rate Schedules on page 43 if your taxable income from all sources on Line 37 is $100,000 or more. Use the correct schedule for your filing status. After you have calculated your tax, enter the amount on Line 38. Line 39 - Income Percentage To figure your income percentage, divide the amount on Line 29 in Column B by the amount on Line 29 in Column A. Carry your result to four decimal places. For example, if the amounts used were $20,000 (Line 29, Column B) divided by $30,000 (Line 29, Column A), the result would be 66.67% or In cer tain situations, however, the income per centage can exceed 100%. Note: The income percentage can exceed 100%. For example, a taxpayer realizes a $50,000 gain from the sale of real property in New Jersey and sustains a $10,000 loss from the sale of property in Florida. This nonresident (who has no other income) reports $40,000 as his income from everywhere (Column A) and $50,000 as income from New Jersey sources (Column B). The income percentage is 125% (or 1.25) calculated as follows: $50,000 (Line 29, Column B) divided by $40,000 (Line 29, Column A). Line 40 - New Jersey Tax Multiply the amount on Line 38 by the income percentage on Line 39, and enter the result on Line 40. This is your New Jersey tax. Line 41 - Sheltered Workshop Tax Credit Enter on Line 41 your Sheltered Workshop Tax Credit for the current year from Part IV, line 12 of Form GIT-317. Enclose a copy of Form GIT-317 with your return and keep a completed copy for your records. Line 42 - Balance of Tax Subtract Line 41 from Line 40 and enter the result on Line 42. Line 43 - Penalty for Underpayment of Estimated Tax New Jersey s income tax is a pay as you go tax. You must pay the tax as you earn or receive income throughout the year. If you do not pay enough tax on the income you received, you may owe interest (see Estimated Tax on page 10). To determine the amount of interest for the underpayment of estimated tax, complete Form NJ-2210, Underpayment of Estimated Tax by Individuals, Estates or Trusts. Enter on Line 43 the amount of interest due from line 19, Form NJ Be sure to check the box at Line 43 and enclose Form NJ 2210 with your return. Line 44 - Total Tax and Penalty Enter the total of Lines 42 and 43. Line 45 - Total New Jersey Income Tax Withheld Enter on Line 45 the total New Jersey income tax withheld, as shown on your W 2, W-2G, and/or 1099 statement(s). All W-2 and 1099 statements must reflect your correct Social Security Number for the withholdings to be credited. If the Social Security Number is missing or incorrect, you must get a corrected statement. Only your employer/payer can issue or correct these forms. If you have not received a W-2 or 1099 form by February 15, or if the form you received is incorrect, contact your employer/payer immediately. Form W-2. The W-2 must indicate the amount of New Jersey tax withheld and the State box must indicate that the tax withheld was New Jersey income tax. (See sample W-2 on page 16.) Enclose the state copy of each withholding statement (W-2, W-2G).

30 28 Line 45 - Total New Jersey Income Tax Withheld - Do not include on Line 45 amounts withheld as New Jersey unemployment insurance/workforce development partnership fund/supplemental workforce fund contributions (shown on the W-2 as UI/WF/SWF, if combined, or UI, WF, and SWF, if stated separately), New Jersey disability insur ance contribu tions (may be shown as DI), or New Jersey family leave insurance contributions (shown as FLI). These are not New Jersey income tax withholdings and may not be used as credits on Line 45. See instructions for Lines 48, 49, and 50 for more information on unemployment insurance/workforce development partnership fund/supplemental workforce fund contributions, disability insurance contributions, and/or family leave insurance contributions. Form Although most 1099 forms do not show state withholding, New Jersey income tax may have been withheld from income you received that was reported on Form 1099-R or 1099-MISC. Enter on Line 45 the total amount of New Jersey income tax withheld, if any, shown on those statements. Enclose the state copy of Form 1099-R or 1099-MISC with your return only if New Jersey income tax was withheld. Note: Do not include on Line 45: Tax paid on your behalf by partnership(s). Report on Line 47. Estimated payments made in connection with a sale or transfer of real property in New Jersey. Report on Line 46. Line 46 - New Jersey Estimated Payments/Credit From 2015 Tax Return Enter on Line 46 the total of: Estimated tax payments made for Include any payments made in connection with the sale or transfer of real property in New Jersey. Enclose a copy of Form GIT/REP-1, Nonresident Seller s Tax Declaration, with the return. (See Estimated Tax on page 10.) Credit applied from your 2015 tax return* 2016 Form NJ-1040NR Line-by-Line Instructions Amount, if any, paid to qualify for an extension of time to file Payments made by an S corporation on behalf of a nonresident/noncon senting shareholder. Enclose a copy of Form NJ-1040-SC. *This is the amount of overpayment that you chose to carry forward on Line 54A of your 2015 NJ-1040NR as a credit towards your income tax liability for If you received a refund check for 2015, do not enter the amount of that refund check on Line 46. Do not include tax paid on your behalf by partnership(s) on this line. It must be reported on Line 47. Payments Made Under Another Name or Social Security Number. If you changed your name because of marriage/ civil union, divorce/dissolution, etc., and you made estimated tax payments using your former name, enclose a statement with your return explaining all the payments you and/or your spouse made for 2016 and the name(s) and Social Security Number(s) under which you made payments. If your spouse died during the year and any estimated payment(s) were made under the deceased spouse s Social Security Number and other payments were made under your Social Security Number, you must enclose a statement with your return listing the Social Security Numbers and the amounts submitted under each Social Security Number. Line 47 - Tax Paid on Your Behalf by Partnership(s) Enter on Line 47 the total amount of New Jersey income tax paid on your behalf by partnership(s) as shown on: Schedule NJK-1 (Form NJ-1065), line 1, Part III, nonresident partner s share of New Jersey tax Schedule NJK-1 (Form NJ-1041), Part II, tax paid by partnerships and distributed Schedule NJK-1 (Form NJ-1041), Part III, tax paid by partnerships on behalf of trust Enclose a copy of Schedule NJK-1 (Form NJ-1065) for each partnership that paid tax on your behalf, and a copy of Schedule NJK-1 (Form NJ-1041) for each estate or trust that distributed tax paid by partnership(s) to you for which you are claiming a credit. UI/WF/SWF; DI; FLI Credits (Lines 48 50) You may take credit for excess unemployment insur ance(ui)/workforce development partnership fund(wf)/supplemental workforce fund contributions (SWF), disability insurance contributions (DI), and/ or family leave insur ance contributions (FLI) withheld by two or more employers. For 2016, the maximum employee UI/WF/SWF contribution was $138.56, the maximum employee DI contribution was $65.20, and the maximum employee FLI contribution was $ If you had two or more employers and you contributed more than the maximum amount(s), you must enclose a completed Form NJ 2450 with your return to claim the credit. If any single employer withheld more than the maximum for either UI/WF/SWF ($138.56), DI ($65.20), or FLI ($26.08) contributions, enter only the maximum amount for that category on Form NJ You must contact the employer who withheld contributions in excess of the legal maximum for a refund. All information on Form NJ-2450 must be substantiated by W-2 statements or the claim will be denied. The amounts of UI/ WF/SWF contributions, DI contributions, and FLI contributions withheld must be reported separately on all W-2 statements. The employer s New Jer sey Taxpayer Identification Number or approved private plan number must also be shown. (See sample W-2 on page 16.) Be careful when completing Form NJ 2450 and check that your W-2 verifies the information you provide. If all New Jersey Department of Labor and Workforce Development requirements are not met, your income tax credit must be denied. You must then refile your claim with the Department of Labor and Workforce

31 2016 Form NJ-1040NR Line-by-Line Instructions 29 UI/WF/SWF; DI; FLI Credits (Lines 48 50) - Development using their Form UC 9A, Employee s Claim for Refund of Excess Contributions. Once your income tax credit for excess UI/WF/SWF contributions, DI contributions, and/or FLI contributions has been denied, it can only be claimed through the Department of Labor and Workforce Development. Line 48 - Excess New Jersey UI/WF/SWF Withheld Enter on Line 48 the excess unemployment insurance/workforce development partnership fund/supplemental workforce fund contributions withheld from Line 4 of Form NJ Enclose Form NJ-2450 with your return. Line 49 - Excess New Jersey Disability Insurance Withheld Enter on Line 49 the excess disability insurance contributions withheld from Line 5 of Form NJ Enclose Form NJ-2450 with your return. Line 50 - Excess New Jersey Family Leave Insurance Withheld Enter on Line 50 the excess family leave insurance contributions withheld from Line 6 of Form NJ Enclose Form NJ-2450 with your return. Line 51 - Total Payments/ Credits Add Lines 45 through 50 and enter the total on Line 51. Amount You Owe or Overpayment (Lines 52 and 53) Compare Lines 51 and 44. If Line 51 is less than Line 44, you have a balance due. Complete Line 52. If Line 51 is more than Line 44, you have an overpayment. Complete Line 53. Line 52 - Amount You Owe Subtract Line 51 (Total Payments/ Credits) from Line 44 (Total Tax and Penalty) and enter the result on Line 52. If you have a balance due, you may make a donation on Lines 54B, 54C, 54D, 54E, 54F, and/or 54G by adding the amount of your dona tion to your payment. Make your check or money order for the total amount pay able to State of New Jersey TGI. Send your payment with the payment voucher in the same envelope with your return. You may also pay your 2016 New Jersey income taxes by electronic check (e check) or credit card (Visa, American Express, MasterCard, or Discover). See How to Pay on page 8. Do not send in the payment voucher if you pay your taxes by e-check or credit card. Note: If the amount of tax you owe (Line 52) is more than $400, you may want to increase your estimated payments or contact your employer for Form NJ W4 to increase your withholdings to avoid future interest assessments. Line 53 - Overpayment Subtract Line 44 (Total Tax and Penalty) from Line 51 (Total Payments/Credits) and enter the result on Line 53. Line 54A - Credit to Your 2017 Tax Enter on Line 54A the amount of your overpayment that you wish to credit to your 2017 tax liability. Contributions (Lines 54B 54G) Whether you have an overpayment or a balance due, you may make a donation to any of the following funds: Endangered Wildlife Fund Children s Trust Fund Vietnam Veterans Memorial Fund Breast Cancer Research Fund U.S.S. New Jersey Educational Museum Fund You may also make a donation to one of the following funds on Line 54G. Drug Abuse Education Fund (01) Korean Veterans Memorial Fund (02) Organ and Tissue Donor Awareness Education Fund (03) NJ-AIDS Services Fund (04) Literacy Volunteers of America New Jersey Fund (05) New Jersey Prostate Cancer Research Fund (06) World Trade Center Scholarship Fund (07) New Jersey Veterans Haven Support Fund (08) Community Food Pantry Fund (09) Cat and Dog Spay/Neuter Fund (10) New Jersey Lung Cancer Research Fund (11) Boys and Girls Clubs in New Jersey Fund (12) NJ National Guard State Family Readiness Council Fund (13) American Red Cross NJ Fund (14) Girl Scouts Councils in New Jersey Fund (15) Homeless Veterans Grant Fund (16) The Leukemia & Lymphoma Society New Jersey Fund (17) Northern New Jersey Veterans Memorial Cemetery Development Fund (18) New Jersey Farm to School and School Garden Fund (19) Local Library Support Fund (20) ALS Association Support Fund (21) Fund for the Support of New Jersey Nonprofit Veterans Organizations (22). For more information on the funds, see page 1. Indicate the amount you want to contribute by checking the appropriate box(es) or entering any amount you want to contribute. If you are making a donation on Line 54G, also enter the code number (01, 02, 03, etc.) for the fund of your choice. The amount you donate will reduce your refund or increase your balance due. Be sure to enter an amount when making a contribution.